Rakbank is set acquire Ras al-Khaimah National Insurance Company (RakNic) as it seeks to diversify its business into new sectors.

The Ras al-Khaimah-based bank has secured shareholder approval for the acquisition, which will see the financial institution acquire a majority stake at AED3.64 ($0.99) a share.

RakNic is an Abu Dhabi Securities Exchange-listed business, set up 40 years ago. The acquisition still requires the approval from the UAE Central Bank and the insurance industry regulators.

Rakbank is also targeting growth within its small and medium-sized business and commercial lending arm as it seeks to benefit from the strong economic outlook for the UAE.

Its first half results reported total assets of AED34.5bn, marking a 21.8 per cent year-on-year growth. Gross loans and advances reached AED23.9bn, a 12.9 per cent rise compared with the same period last year.