Bank al Etihad of Jordan has formalised its intention to enter the UAE market by signing a Memorandum of Understanding (MoU) to establish a new banking entity in the Abu Dhabi Global Market (ADGM).
This initiative is in partnership with Ethmar International Holding, an investment holding group based in Abu Dhabi, along with other investors from the UAE.
Bigger Footprint
Once realised, this expansion would broaden Bank al Etihad’s footprint beyond its current operations in Jordan and Iraq.
The proposed new bank is anticipated to obtain a Category 1 banking licence within ADGM, allowing it to serve both regional and international clients, as well as businesses engaged in operations beyond the UAE mainland.
Cross-Border Business
The establishment of this new bank is expected to enhance Bank al Etihad’s ability to facilitate cross-border business and transactions in its target markets. The lender aims to leverage this platform to cultivate new relationships with corporate, institutional, and high-net-worth clients.
Diversification of Revenue Streams
This initiative aligns with the bank’s broader growth strategy, which focuses on diversifying its product offerings and revenue streams while strengthening its connections with regional and international markets.
Once operational, the new bank will adhere to the regulatory framework established by ADGM and will be overseen by the Financial Services Regulatory Authority (FSRA).
The bank will also meet the regulatory requirements in both the UAE and Jordan although the launch remains contingent on obtaining all necessary official approvals.
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