Dubai rescues Islamic lender to bolster bank sector
Dubai’s government took over Dubai Bank in order to avoid a collapse undermining the state’s banking sector. The options were to run the bank on a stand-alone basis or merge it with another state-owned bank.
At the end of 2009, Dubai Bank had total assets of AED17.4 billion ($4.74 billion) against total liabilities of 15.7 billion dirhams. It made a loss of AED290.6 million.
The government promised that the bank’s current management team will not be affected by the takeover.