Al Ahly Egyptian and Bank Misr have agreed to restructure their presence in the United Arab Emirates. The two banks announced that they have reached a preliminary agreement to transfer the branches of Bank Misr in the UAE to Al Ahly Egyptian. This move is in line with the legal and procedural requirements in the UAE. The banks stated that this decision aims to enhance their external banking presence and meet the evolving demands of the market.
Bank Misr operates five branches in the UAE, located in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. The bank has been present in the UAE market for over four decades. Al Ahly Egyptian also has a presence in the UAE through a entity in the Dubai International Financial Centre and a representative office in Dubai. The acquisition is expected to be completed in an orderly manner, with the UAE Central Bank's requirements and relevant authorities' coordination.
The US Department of the Treasury has proposed measures against Bank Misr's branches in the UAE, citing concerns over transactions with Iran. US Treasury Secretary Scott Bissett stated that Bank Misr's UAE branches had transferred over $1.8 billion to Iran between January 2024 and June 2026. The proposed measures aim to prevent US financial institutions from engaging with Bank Misr's UAE branches.
The acquisition by Al Ahly Egyptian is seen as a comprehensive exit by Bank Misr from the UAE market. According to Egyptian lawyer Mohamed Hamouda, the transfer of branches to Al Ahly Egyptian means that their activities will be transferred to a new entity with a new legal structure. This move provides an additional regulatory guarantee from the Egyptian side, enhancing oversight of future operations.
However, lawyer Mohamed Rashwan noted that the change in ownership does not provide Bank Misr's branches with legal immunity from potential US actions. The continued operation of the branches and their licensing in the UAE remain subject to the UAE Central Bank's oversight. The acquisition was carried out in coordination with UAE and US authorities.
The acquisition is viewed as a non-traditional liquidation of Bank Misr's UAE operations, with rights and obligations transferred to Al Ahly Egyptian. According to Salem Nanda, former head of the legal sector at Mid Bank, this approach ensures that the bank's obligations to customers and depositors are fulfilled, while preserving its rights arising from existing loans and facilities.
The move effectively ends Bank Misr's direct presence in the UAE, with Al Ahly Egyptian taking its place. However, the US action may not be automatically rescinded, especially if it relates to transactions carried out before the transfer of ownership. The acquisition allows for an orderly transition of business, ensuring continuity of services and protection of customers' interests and rights in the UAE.
Key points
- Al Ahly Egyptian to acquire Bank Misr's branches in the UAE
- The acquisition aims to ensure an orderly transition of business and protect customers' interests
- The move does not provide Bank Misr's branches with immunity from potential US actions
