The proposed acquisition of 100% of UAE-based Shariah-compliant lender Noor Bank by Dubai Islamic Bank (DIB) has received a green light from the latter’s board.

In a meeting, DIB’s board said that it will recommend the offer to its shareholders after securing regulatory nod.

Under the plan, Noor Bank will be integrated with DIB.

The merged group is set to be one of the largest Islamic banks globally with around AED275bn (nearly $75bn) in assets.

DIB group CEO Adnan Chilwan said: “Islamic finance is increasingly acknowledged as a viable alternative to conventional banking and, through this acquisition, we believe that we can geometrically accelerate the growth and popularity of Shari’a compliant finance across the region and beyond.

“With a strong track record and a robust platform, the future can only be positive with the additional scale and reach that we will gain as a consequence of this acquisition.

“Our focus will remain on providing the highest standards of service and we are committed to integrating the two operations as quickly and effectively as possible in order to provide a seamless experience for our increased customer base. This scale will provide greater efficiencies and reduce our operational costs.”

Earlier this year, DIB obtained the approval from its board to appoint financial advisers for carrying out due diligence and offering opinion on the valuation of Noor.