Ministry of Finance completes buyout of Emirates Industrial Bank

This adds to the 51% already owned by the government and completes the buyout of the bank.

The institutions that were involved in the sale of their stake to the Government include the General Pensions and Social Security Authority and the Abu Dhabi Cooperative Society. The banks that sold their stake include Abu Dhabi Commercial Bank, National Bank of Abu Dhabi, National Bank of Dubai, Emirates Bank International, Mashreq Bank, Sharjah Bank and Arab Emirates Investment Bank. The insurance companies were Abu Dhabi National Insurance Company, Al Ain Ahlia Insurance Company, Al Dharfa Insurance Company and Dubai Insurance Company.

This agreement marks a key moment in the formation of the Emirates Development Bank, the government entity that will fund the UAE's industrial sector, witnessing the formation of numerous sustainable small and medium sized businesses of UAE nationals, as well as funding for development projects across the UAE. This is being done with an eye on the long term prosperity and sustenance of the UAE.

In June 2009, the UAE Cabinet approved a draft law establishing the Emirates Development Bank with an authorized capital of Dhs10bn, of which Dhs5bn will be provided by the government. It is scheduled to be operational by 2010 and will be formed by the merger of Emirates Real Estate Bank and Emirates Industrial Bank, both of which are now 100% government owned.

Emirates Development Bank's objective is to complement existing financial services and commercial banks. It intends to partner with fund providers and banks within each Emirate for government housing schemes along with social and developmental projects. As part of this mandate, it will assist in funding the 40,000 houses, under the Sheikh Zayed Housing Programme, to be built for UAE nationals.