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Kuwait bank may buy stake in UAE lender

DUBAI — Global Investment House, Kuwait's biggest investment bank, may buy 20 per cent of National Bank of Umm Al Quiwain PSC as it expands into the UAE.

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Global Investment plans to buy Dh2.36 billion ($643 million) of convertible bonds from National Bank with the option of converting them into 330 million new shares, the Kuwait-based bank said in an e-mailed statement on Monday.

"This investment is a continuation of our interest to widen and strengthen our presence" in the six Gulf Arab states including Saudi Arabia, Qatar, Bahrain and Oman, Global Executive Vice-President Omar El-Quqa said in the statement.

Earnings at the 52 banks operating in the UAE, the second-biggest Arab economy, are climbing as higher oil prices spur growth. National Bank, with 16 branches serving more than 100,000 clients in the UAE, is part owned by the government of Umm Al Quiwain.

Global Investment raised $1.15 billion for "strategic investments" by selling global depositary receipts in May.

National Bank has gained 43 per cent in Abu Dhabi trading this year, valuing the lender at Dh8.2 billion. The stock didn't trade yesterday.