Egypt’s NBE set to acquire Banque Misr’s UAE banking operations

Egypt’s National Bank of Egypt has secured preliminary approval from the United Arab Emirates central bank to acquire Banque Misr’s banking operations in the country, the state-owned lenders said. 

The move comes weeks after U.S. authorities proposed cutting Banque Misr UAE off from the U.S. financial system over alleged Iran-related transactions.

A reshaping of UAE banking

The two banks said they had reached a preliminary agreement to reorganize their presence in the UAE, describing the deal as part of efforts to adapt to changes in international banking markets. They said the arrangement is intended to integrate their operations while maintaining uninterrupted services for customers.

The UAE central bank has also begun an urgent review of Banque Misr’s operations, according to the lenders. The proposed transaction involves Banque Misr’s five UAE branches, which include locations in Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah, according to U.S. regulatory filings.

U.S. pressure raises stakes

The proposed acquisition follows a U.S. Treasury action in August that identified Banque Misr UAE as a potential money-laundering concern and proposed prohibiting U.S. financial institutions from maintaining correspondent accounts for the branches. The public comment period for the proposal runs through Oct. 1.

The Treasury said Banque Misr UAE processed about $1.8 billion for 103 companies potentially connected to Iranian shadow banking networks between January 2024 and June 2026. The department described the UAE operations as a critical access point to U.S. dollars for Iranian illicit finance.

Egypt’s banks consolidate abroad

Neither Egyptian lender referred directly to the U.S. action in its announcement. Instead, they framed the agreement as a broader restructuring of their international banking footprint, potentially allowing NBE to take over the UAE operations while preserving banking services for customers.

NBE, Egypt’s largest commercial bank by assets, deposits, loans and customer base, operates internationally through subsidiaries, branches and representative offices. Its overseas network includes operations in the United Kingdom and Sudan, as well as branches in New York and Shanghai.

Banque Misr, founded in 1920 by Egyptian economist Mohamed Talaat Harb, is Egypt’s second-largest bank and a major state-owned lender. Its UAE operations have approximately $6 billion in assets, according to FinCEN’s proposed rule, underscoring the significance of the restructuring.