Emirates NBD Says Board Discussed Dubai Group Sale of Noor StakeMatthew Martin and Arif Sharif
Emirates NBD, the second-largest bank in the United Arab Emirates, said it discussed the potential sale of Dubai Group’s stake in Noor Islamic Group LLC.
The Dubai-based lender reviewed the proposed transaction at a board meeting yesterday, according to a statement today on the website of the Dubai stock market. The release, which didn’t give further details on the possible sale, was later withdrawn and republished without referring to Noor Islamic.
State-owned companies such as Dubai Group are taking advantage of an economic rebound to sell assets and cut debt. The company last year sold consumer finance company Dubai First to Abu Dhabi-based First Gulf Bank PJSC and a 30.5 percent stake in Bank Islam for $550 million to BIMB Holdings in August.
Dubai, the second-largest of seven sheikhdoms that make up the U.A.E., roiled global markets in 2009 after its near default on $25 billion of debt. State-owned companies such as Dubai Holding LLC, Dubai Group’s parent, and Dubai World Corp. borrowed billions in a spending binge to transform the city into the Middle East’s trade and tourism hub.
Dubai Group, Noor and Emirates NBD weren’t immediately available to comment.