Abu Dhabi holding company ADQ plans to establish a digital bank after it obtained a banking licence from First Abu Dhabi Bank (FAB).
The new bank will have initial capital of about AED2bn ($544m).
ADQ gained a banking licence after FAB received shareholder approval to transfer its legacy FGB (First Gulf Bank) banking licence.
FAB will transfer ownership of the legacy FGB banking licence to ADQ in exchange for 10 per cent of the new entity’s share capital, and preferential access to another 10 per cent of the shares in the event of an initial public offering (IPO).
"At ADQ, we have identified the opportunity to create a standalone digital bank to further enhance Abu Dhabi’s digital economy while strengthening our financial services portfolio,” said CEO of ADQ, Mohamed Hassan al-Suwaidi.
Government controlled ADQ is taking an increasingly active role in Abu Dhabi's economy. It recently invested in Abu Dhabi National Oil Company (Adnoc) pipelines, took control of Emirates Nuclear Energy Corporation (Enec), acquired a stake in logistics provider Aramex, and formed a company to promote food security.
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