The National Bank of Egypt (NBE) has received preliminary approval from the Central Bank of the UAE to acquire Banque Misr's branches in the country. This move is part of a broader restructuring effort following US measures targeting Banque Misr's dollar transactions. The acquisition aims to ensure the continuity of banking services and protect customers' interests. The two banks announced the deal on 22 September, pending the completion of regulatory procedures and approvals.
The US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) announced a proposed regulatory measure on 28 August, aimed at cutting Banque Misr's UAE branches off from correspondent banking services provided by US financial institutions. This measure would affect their ability to conduct dollar transactions through the US financial system. The US Treasury alleged that Banque Misr's UAE branches processed around $1.8 billion for 103 companies linked to Iranian financial networks between January 2024 and June 2026.
The US Treasury's measure is part of a broader campaign against financial networks linked to Iran, dubbed "Operation Economic Outcast". US Treasury Secretary Scott Bessent stated that Washington was targeting what he described as the "economic lifelines" that allow Iran to access the global financial system. Bessent accused Banque Misr's UAE branches of supporting the Iranian regime, although these remain allegations and assessments made by the US side.
Following the US announcement, UAE and Egyptian authorities became directly involved in addressing the issue. On 30 August, the Central Bank of the UAE and the Central Bank of Egypt (CBE) said they were continuing to coordinate and cooperate over Banque Misr's branches. The necessary measures would be taken within the specified timeframe to ensure the continuity of banking services. An agreement was subsequently reached to reorganise the Egyptian banking presence in the UAE.
Banking expert Sahar Al-Damaty believes that the decision to approve the NBE's acquisition followed extensive regulatory and banking procedures. The UAE central bank had conducted a comprehensive inspection of the branches before approving the deal. Al-Damaty noted that the transactions in question date back several years and have already been executed and completed. The closure of Banque Misr's branches brings this matter to an end for the bank.
For banking expert Walid Nagy, the preliminary approval for the NBE's acquisition is, in part, a regulatory measure aimed at protecting depositors' and customers' rights. The NBE will take over the assets and liabilities associated with the branches from Banque Misr. Nagy pointed out that the main issue for Banque Misr is the loss of its direct presence in the UAE market and the banking and financial services that came with it.
The transaction remains at the stage of preliminary approval, with the final details of the transfer, the way the branches will be managed, and the timetable for completing the process to be determined as the UAE regulatory requirements are fulfilled. Both banks have affirmed that the transfer will be carried out in coordination with the relevant authorities, while preserving customers' rights and maintaining continuity of services.
Key points
- The National Bank of Egypt has received preliminary approval to acquire Banque Misr's branches in the UAE.
- The acquisition aims to ensure the continuity of banking services and protect customers' interests amid US sanctions.
- The US Treasury alleged that Banque Misr's UAE branches processed $1.8 billion for companies linked to Iranian financial networks.
