Bank al Etihad Expands into the UAE Market
In an exciting development for the financial sector, Bank al Etihad, one of Jordan’s leading banks, is set to establish a significant presence in the United Arab Emirates (UAE). This initiative comes through a strategic partnership with Ethmar International Holding (EIH), a top institutional investment group based in Abu Dhabi, alongside other local investors. Together, they have committed to a Memorandum of Understanding (MoU) to create a new banking entity within Abu Dhabi Global Market (ADGM).
A New Chapter for Bank al Etihad
The establishment of a new bank in Abu Dhabi marks a pivotal moment for Bank al Etihad in its regional expansion journey. With this venture, the bank aims to broaden its footprint beyond its existing operations in Jordan and Iraq, positioning itself within one of the world’s most prominent financial hubs. The move not only highlights the bank’s ambition but also taps into the growing demand for diversified banking solutions in the region.
The new institution will be granted a Category 1 banking license under ADGM, which allows it to serve both regional and international clients. This license will provide the necessary framework for the bank to conduct business across various markets outside the UAE mainland. By leveraging its existing expertise, Bank al Etihad plans to offer comprehensive financial services that cater to corporate, institutional, and high-net-worth clients, facilitating cross-border business transactions effectively.
Strengthening Regional and International Ties
This strategic partnership is a significant part of Bank al Etihad’s broader growth strategy. With over five decades of experience in the banking sector, the institution plans to utilize its expertise to enhance its relevance across the region. The goal is to diversify product offerings and revenue streams while deepening connectivity with key markets both regionally and internationally.
The proposed bank will be governed by ADGM’s globally recognized regulatory framework and will operate under the supervision of the Financial Services Regulatory Authority (FSRA). This ensures compliance with regulatory standards prevalent in both the UAE and Jordan, allowing the bank to maintain high levels of trust and transparency as it embarks on this new venture.
About Bank al Etihad and Ethmar International Holding
Bank al Etihad has been a pillar of the financial services landscape in Jordan since its inception in 1987. The bank has continuously evolved by expanding its operations through strategic acquisitions, including a controlling stake in Safwa Islamic Bank in 2017 and more recent ventures into Iraq and Egypt. With total assets nearing JOD 11 billion and equity around JOD 1 billion, Bank al Etihad is firmly established as a major player in the region.
Ethmar International Holding (EIH), on the other hand, is focused on creating and investing in businesses that contribute to long-term economic growth. Based in Abu Dhabi, EIH is dedicated to forming strategic partnerships that connect local opportunities with international markets, aligning perfectly with Bank al Etihad’s vision for growth.
In summary, this alliance is poised to reshape the banking landscape in the UAE while marking a new phase in Bank al Etihad’s growth trajectory. Together with Ethmar International Holding, the bank is set to deliver innovative services and strengthen financial ties in the region.