Bank Leumi has signed memorandums of understanding (MoUs) with First Abu Dhabi Bank (FAB) and Emirates NBD, before Israel and the UAE officially normalised diplomatic ties, Reuters reported.
Bank Leumi said that its agreements with FAB and Emirates NBD will help both the countries to implement economic relations.
Leumi transferred $180 to both the banks to symbolise the deals, the report added.
Initially, the bank’s clients were able to transfer funds to and from the UAE, through European banks. Now, clients can directly transfer their funds.
Under the MoUs, the lenders agreed to form ties with financial institutions in both countries to offer clearance, credit lines, and foreign currency trade services.
Bank Leumi, through its subsidiaries Leumi Partners and Leumi Tech, will partner with investors and wealth funds in the UAE.
Recent Gulf deals
Recently, Emirates NDB inked a memorandum of understanding (MoU) with Israel’s largest lender Bank Hapoalim, the Reuters report added.
Jordan-based Capital Bank commenced due diligence to buy Lebanon-based Bank Audi’s businesses in Jordan and Iraq.
Last week, Bahrain’s Bank ABC began preliminary talks to acquire Blom Bank’s Egypt unit.
Earlier this month, FAB also reportedly began talks with Bank Hapoalim and Bank Leumi to form cooperation in the financial sector as the UAE and Israel normalised their diplomatic ties.
This comes close on the heels of Bank Leumi entering into preliminary discussions with Emirates NBD to forge a partnership after the peace agreement.
Last month, Reuters reported that Blom Bank is considering the sale of its Egyptian business for up to $300m.
In the same month, a report said that Emirates NBD is planning to buy the assets of Bank Audi Egypt and the assets of Lebanon’s Blom Bank.