Dubai Islamic Bank (DIB) is acquiring a 20% stake in Turkey’s T.O.M. Group, marking the company’s debut into the Turkish banking sector.
The Sharia-compliant lender confirmed the investment on Friday, noting that it has an option to increase the shareholding to 25% within months.
The investment, which represents a minority shareholding in T.O.M Group, will provide an opportunity for the UAE-based firm to tap into the digital banking and financial technology sector in Turkey.
“Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment,” said DIB Group CEO Adnan Chilwan.
“[Turkey] holds a pivotal position in our strategy, considering the sizable market dynamics and the opportunities we foresee in the digital banking and financial technology sector.”
DIB confirmed that the transaction has obtained the approval from the Banking Regulation and Supervision Agency (BDDK), the Central Bank of Turkey and the regulatory authorities in the UAE.
The deal will be formalised after a clearance is issued by the Turkish Competition Authority.
(Writing by Cleofe Maceda; editing by Seban Scaria)