UAE: Emirates Islamic Bank to delist from Dubai stock market

Vijay Valecha , June 9, 2025, Khaleej Times

In a statement to DFM, where it is listed, EIB said it would instruct the DFM “to suspend trading of its shares with effect from Tuesday, June 10, 2025, and all remaining EIB shares (not already held by ENBD) will be re-registered in the name of Emirates NBD in EIB’s share register on or around June 13, 2025.”

The Shariah-compliant lender said it had received a notification from Emirates NBD Bank with regards to the mandatory acquisition of all shares in EIB held by EIB shareholders who have not accepted ENBD's offer in accordance with the terms of the Offer Document dated February 27, 2025, in order to attain 100 per cent ownership of the entire issued and paid up share capital of EIB.

EIB shareholders were notified that the notice period for mandatory acquisition ended on June 7, 2025.

As of Monday, neither Emirates Islamic nor Emirates NBD has received any objection to the mandatory acquisition, said a statement.

Emirates Islamic’s net profit increased to a record Dh1 billion in the first quarter of 2025, up by 24 per cent.

In 2024, it reported a record profit before tax of Dh3.1 billion, a 46 per cent increase over the previous year. Net profit also reached a record high of Dh2.8 billion, representing a 32 per cent growth.

“Shareholders who did not opt for a payment method with the Dubai CSD are requested to contact Dubai CSD to update their payment information and receive their cash considerations within six months of the date of this notice,” it said, adding that after the lapse of this period, EIB shareholders will need to contact Emirates NBD directly to receive their cash.

EIB’s delisting is not a first for the DFM. The exchange has experienced a few delistings in the past. Notably, Gulf General Investments Company was delisted on June 3, 2023, following a trading suspension exceeding six months. Arabtec Holding Company and Marka Company were also delisted on June 23, 2023, due to their liquidation. In terms of the banking sector, Bahrain-based Khaleeji Commercial Bank (KCB) saw its delisting from the DFM on August 27, 2020.

Limited impact

Emirates Islamic shares were trading at Dh10.35 per share on Monday while Emirates NBD was trading at Dh21.85 per share, down 1.1 per cent.

“Emirates NBD's mandatory cash offer of Dh11.95 per share for the remaining 0.11 per cent stake, totalling Dh69.8 million, has resulted in full ownership of Emirates Islamic Bank. ENBD plans to maintain EIB's commercial registration and trade name, ensuring continuous operations. This strategic move aligns with Emirates NBD's goal to streamline operations and bolster its presence in the Islamic banking sector,” said Vijay Valecha, CIO of Century Financial.

“The delisting of EIB from DFM would have a limited direct impact on minority investors, who held a 0.11 per cent stake before the full acquisition, as no shareholders objected to this transaction. This move could indicate a smooth transition under a bigger brand name from a corporate perspective, where the parent bank could seek greater control and operational efficiency by owning subsidiaries outright,” he added.

Valecha pointed out that the delisting would mean one less investment option for investors looking for Shariah-compliant exposure on the exchange.

“However, the three-month trading volume for EIB, which stands at 3,414 according to data from the DFM exchange, is minuscule compared to the 149,914,906 volume for Emirates NBD, suggesting that public investors, anyway, have their focus on the parent ENBD group. The delisting does not suggest any systemic risk or weakness; rather, it reflects the strategic alignment of the Bank within the ENBD name, boosting investor confidence for the Bank,” he added.

Source:

Khaleej Times