Bank al Etihad and INVESTBANK announce Jordan's largest banking merger
Bank al Etihad and INVESTBANK have announced that their respective Boards of Directors have approved a strategic merger under which Bank al Etihad will acquire 100% of INVESTBANK's share capital. The acquisition will be carried out through a capital increase by Bank al Etihad, with all newly issued shares allocated to INVESTBANK shareholders in exchange for transferring full ownership of their shares to Bank al Etihad. This move sets the stage for the formal merger of INVESTBANK into Bank al Etihad (the surviving entity), in accordance with applicable legal and regulatory frameworks.
This merger marks a major milestone in Jordan's banking sector, creating a unified institution with significantly enhanced capital and operational strength. Following the completion of the transaction, Bank al Etihad's capital will increase to JOD 325.2 million, with total equity reaching approximately JOD 1 billion. Combined total assets will rise to nearly JOD 11 billion, positioning Bank al Etihad among the largest national banking institutions.
The transaction represents a significant achievement and is aligned with the Central Bank of Jordan's strategy to encourage mergers that create stronger, more resilient financial institutions, particularly given the vital role banks play in supporting the national economy.
This step is part of a well-considered strategic vision aimed at reinforcing the bank's local presence and driving regional expansion. The newly formed entity will benefit from greater operational flexibility and wider geographic reach, enabling it to access new market segments and grow its customer base both locally and regionally. It will also be well-positioned to deliver integrated financial services that meet the evolving needs of individuals and businesses.
Both banks reaffirm their commitment to retaining employees, recognizing the essential role of human capital in sustaining success and maintaining institutional balance. They are dedicated to fostering a stable work environment that empowers talented professionals to thrive in this new phase.
Basem Salfiti will continue to serve as Chairman of the Board, while Fahmi Abu Khadra will assume the role of Vice Chairman (subject to board approval). Muntaser Dawwas will be appointed CEO, pending approval from the Central Bank of Jordan. Her Excellency Nadia Al-Saeed, the current CEO, will continue in her role until the transition to the next phase is complete.
The merger will be presented to the general assemblies of both banks in separate extraordinary meetings scheduled for June 25, 2025. This step will initiate the completion of all formal procedures, pending the necessary regulatory approvals from the relevant authorities, notably the Central Bank of Jordan, the Ministry of Industry and Trade / Companies Control Department, and the Jordan Securities Commission.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Tahawul Tech
35 minutes ago
- Tahawul Tech
AI Technology Archives
Alan Qi, President of Huawei Cloud Middle East and Central Asia, discusses their implementation of AI technology, the rate of digital transformation in the region and the potential challenges that could slow the rate of AI adoption for enterprises.
Tahawul Tech
35 minutes ago
- Tahawul Tech
Alan Qi Archives
Alan Qi, President of Huawei Cloud Middle East and Central Asia, discusses their implementation of AI technology, the rate of digital transformation in the region and the potential challenges that could slow the rate of AI adoption for enterprises.
Khaleej Times
37 minutes ago
- Khaleej Times
To make money with crypto, you may need to fire the experts
I had a meeting with a financial adviser sometime in my early 40s , the trauma of which still lives in my body. I was living in the UAE, working hard, making decent money, and ready to get serious about my financial future. I walked into the meeting completely unsuspecting and she didn't waste time. She drew a mountain on a piece of paper and placed a little stick figure — my sad little financial avatar — only halfway up the side. 'This is where you are now,' she said. 'And, if you don't start investing much, much more, this is where you'll be.' Then she drew the rest of the scenario: a steep cliff face, the sad little stick figure barely clinging to the side. I left the meeting and sat in my car and cried. I felt so frustrated and confused. How could someone in their early 40s with no debt and a good salary be in this kind of doomsday scenario? Looking back, I can see I wasn't hopeless — I was manipulated. These kinds of financial 'wake-up calls' are designed not to inform or empower, but to shame, scare, and sell. And this one did lasting damage. The financial confusion and manipulation I faced when I arrived in the UAE changed my behaviour for years. That's why I want to talk about something I've only recently come to understand, which has helped me take my power back. It's called 'low time preference'. The financial confusion and manipulation I faced when I arrived in the UAE changed my behaviour for years" Low time preference is a term from economics and behavioural psychology that refers to a person's ability to delay gratification and prioritise long-term rewards over short-term pleasures. Someone with low time preference is more likely to invest, save, and plan ahead rather than spend impulsively or chase instant rewards. The concept originates in Austrian economics, particularly in the work of Ludwig von Mises and Hans-Hermann Hoppe. I first read about it in the Saifedean Ammous 2018 book The Bitcoin Standard. Before moving to the UAE, I was a regular investor. In Canada, I opened a registered retirement savings plan as soon as I started working at 26. I invested every time I got paid and upped the amount when I got a raise. I was far from perfect and bought a lot of useless things. I got in credit card debt at one point, but I also managed to get out with the help of a second job. As I've written about earlier, I struggled with life-long money fears. When I arrived in the UAE, with no financial plan for my expat life other than being scared that I would mess up the opportunity, I was a very easy mark. That's when the slick financial advisers I engaged, the ones introduced by my workplace, tried to sell me investment products that required 15-year commitments and huge monthly payments. If I ever moved back to Canada, and I was always sure I would be doing that soon, I knew I'd struggle to keep up. So, I said no — again and again, and each time, I got the same amount of shame that I did from the stick-figure artist. The advisers kept saying if I wouldn't do the regular plans, I needed $10,000 (Dh36,729) minimum to invest. I kept telling myself I'd save up, and sometimes I would. But then, I wouldn't. It was a vicious circle that went on for years and because of it I missed the wonder of compounding interest for far too long. It's a small consolation that those products were later revealed to be predatory at worst and poorly structured at best, with up-front fees that people were usually not made aware of. I have heard of people who got through the 15 years, with some regret, and others who couldn't keep up the payments and lost almost everything. As for me, it's clear now that during the move overseas I lost my savings rhythm. Like many people, I also got caught up somewhat in the brunches and the bags – the opposite of low time preference. I could be much farther ahead were things different. And that is one of my deeper regrets. It wasn't until much later that I realised: the entire time, all I needed to do to save regularly again was to open my own investment account. Getting rid of all outside financial 'advisers', facing, and processing my money fears head-on, and figuring out personal finance for myself has helped build hard-won low time preference for me. Being able to invest regularly in Bitcoin without needing a third party has definitely helped. Doing this gives me more peace and clarity than anything I've done financially in years. Now, I don't want to spend on clothes or expensive meals — I want to invest. Bitcoin, with its sound structure and long-term potential, has helped me rediscover the discipline I had before I moved here. I wish I could turn back time – but I'm also of the opinion that it's never too late. That stick figure is not clinging to the edge anymore. She's on the move now, climbing slowly, steadily, and one forward-looking step at a time.
