Bank Nizwa's proposed acquisition of Oman's Alizz Islamic Bank and Revolut's regulatory approval to expand digital asset services in Dubai were among the week's most significant developments captured in today's edition of TAB Middle East Weekly Brief, reflecting momentum in banking consolidation and regulated digital finance. Banks also continued to invest in payments infrastructure. Emirates NBD launched the region's first real-time blockchain-based cross-border US dollar payment service, RAKBANK expanded its partnership with Mastercard, and First Abu Dhabi Bank introduced the Jaywan debit card under the UAE's national card scheme. Read more on the week’s key developments: 1. Oman’s Bank Nizwa proposes merger with Alizz Islamic Bank Bank Nizwa has proposed the acquisition and merger of Alizz Islamic Bank on 16 July, submitting a non-binding letter of intent to Oman Arab Bank to acquire 100% of Alizz's issued share capital at an indicative valuation of 1.2 times book value. The proposed transaction would be financed through a combination of equity, an Additional Tier 1 (AT1) perpetual Sukuk issuance and a strategic investment by Oman International Development and Investment Company (Ominvest), which would hold up to a 20% stake in the enlarged bank, subject to regulatory and shareholder approvals. The merger would create Oman's largest standalone Islamic bank, strengthening Bank Nizwa's market position through a larger customer base, expanded financing and deposit portfolios, and enhanced capital resources. The transaction is also expected to generate operational efficiencies and strengthen the bank's ability to compete for retail, corporate and SME business while supporting its long-term growth strategy. 2. RAKBANK and Mastercard deepen partnership to accelerate digital payments RAKBANK and Mastercard renewed their long-standing strategic partnership on 15 July to accelerate payment innovation across consumer and business banking in the UAE. The collaboration will focus on expanding digital payment capabilities, enhancing security and fraud prevention, supporting SME payment solutions, and introducing new customer payment experiences through Mastercard's global payments network and technology. The renewed partnership strengthens RAKBANK's ability to expand its digital payments proposition across its retail and SME businesses by leveraging Mastercard's payment technologies, cybersecurity capabilities and global acceptance network. This is expected to support higher digital transaction volumes, improve customer retention through enhanced payment experiences and accelerate the rollout of innovative payment solutions. 3. Revolut receives regulatory approval to expand digital asset services in Dubai Revolut received in-principle approval from Dubai's Virtual Assets Regulatory Authority (VARA) on 15 July to offer broker-dealer, exchange, management and investment services for virtual assets in the UAE. The approval follows the fintech's receipt of Stored Value Facilities and Retail Payment Services licences from the Central Bank of the UAE in June and forms part of its strategy to build a locally regulated financial ecosystem for its more than 75 million customers worldwide. The approval enables Revolut to expand beyond payments into regulated digital asset services through its retail app and Revolut X exchange, strengthening its product offering and competitive position in the UAE. It also provides the company with a regulated platform from which to scale its digital wealth and virtual asset business across the Middle East, subject to final regulatory approval. 4. Emirates NBD launches real-time blockchain cross-border payments Emirates NBD has become the first financial institution in the Middle East to enable real-time, blockchain-based cross-border US dollar payments through the Partior network. Launched on 15 July, the solution leverages Partior's distributed ledger platform to provide 24/7 settlement, greater payment transparency and improved liquidity management for corporate and institutional clients, with plans to expand to additional currencies and payment corridors. The implementation strengthens Emirates NBD's transaction banking offering by enabling faster and more efficient cross-border payments for its corporate customers while enhancing its competitive position in international cash management and trade services. It also reinforces the bank's digital transformation strategy through the adoption of distributed ledger technology to modernise cross-border payment infrastructure. 5. First Abu Dhabi Bank launches Jaywan Debit Card under the UAE's national card scheme First Abu Dhabi Bank (FAB) has launched the Jaywan Debit Card under the UAE's national card scheme on 20 July, becoming one of the first banks to introduce the domestic payment solution. Issued in partnership with Al Etihad Payments, the card enables secure payments across ATMs, point-of-sale terminals and e-commerce platforms in the UAE, while supporting tokenised transactions through digital wallets and integration with the FAB Mobile app. The launch strengthens FAB's retail payments offering by expanding customers' access to the UAE's domestic card network while supporting faster adoption of digital payment services. It also positions the bank at the forefront of the nationwide rollout of Jaywan, reinforcing its role in supporting the Central Bank of the UAE's strategy to develop a more resilient and locally governed payments ecosystem. 6. Botswana Stock Exchange joins ADX's Tabadul platform Abu Dhabi Securities Exchange (ADX) continues to expand regional capital market connectivity, with the Botswana Stock Exchange becoming the first African exchange and the 11th market to join its Tabadul digital trading platform. The agreement enables investors to access securities across participating exchanges through their existing local brokerages, strengthening investment links between Africa and the GCC while expanding the platform's reach to markets representing more than US$1 trillion in market capitalisation. The partnership strengthens ADX's cross-border trading ecosystem by broadening investment opportunities for regional and international investors while increasing the scale and attractiveness of the Tabadul platform. It also reinforces ADX's strategy of positioning Abu Dhabi as a gateway for capital flows between the GCC and Africa through enhanced market connectivity. 7. Saudi Arabia licenses Credit Line to expand digital microfinance Saudi Arabia continues to strengthen financial inclusion through regulated digital finance, with the Saudi Central Bank (SAMA) licensing Credit Line to engage in consumer microfinance activity on 13 July,. The approval increases the number of finance companies licensed by SAMA to 77 and enables Credit Line to offer regulated digital microfinance solutions, supporting wider access to consumer credit under the Kingdom's Vision 2030 financial sector programme. The licence enables Credit Line to expand its presence in Saudi Arabia's growing consumer finance market while increasing access to regulated financing for underserved customer segments. It also reinforces SAMA's strategy of encouraging greater competition and innovation in digital lending while maintaining strong regulatory oversight and consumer protection. 8. Middle East Stablecoin Association established in DIFC The Middle East Stablecoin Association (MESA) has been established as a non-profit organisation in the Dubai International Financial Centre (DIFC) on 15 July, to support the responsible adoption of stablecoins across the Middle East. Founded by a coalition of digital asset firms, the association will promote policy dialogue, industry standards, education and collaboration between regulators, financial institutions and technology providers to support the development of a trusted stablecoin ecosystem. The establishment of MESA provides the digital asset industry with a dedicated platform to engage regulators, develop common standards and support the responsible adoption of stablecoins across the region. It also strengthens DIFC's position as a hub for digital asset innovation while encouraging greater institutional participation in blockchain-based payments and tokenised financial services. 9. Qatar Islamic Bank grows financing and deposits as first-half profit rises to QAR 2.23 billion ($0.61 billion) Qatar Islamic Bank (QIB) reported first-half 2026 net profit of QAR 2.23 billion ($0.61 billion) on 20 July, up 2.3% year on year. Total assets increased to QAR 222.4 billion ($61.1 billion), while financing and customer deposits continued to expand, reflecting steady growth across the bank's retail, corporate and SME businesses supported by disciplined balance sheet management. The results indicate that QIB continues to grow by expanding its financing portfolio while maintaining a stable funding base and strong balance sheet. Sustained deposit growth and solid capital provide capacity to support further lending while preserving resilience in a competitive domestic market. 10. Dubai Islamic Bank grows revenue to AED 12.4 billion ($3.38 billion) on financing demand and stronger asset quality Dubai Islamic Bank (DIB) reported gross revenue of AED 12.4 billion ($3.38 billion) for the first half of 2026 on 14 July, up 10% year on year, supported by growth across funded and non-funded income streams. Net financing assets increased 7% year to date to AED 281 billion ($76.5 billion), customer deposits reached AED 327 billion ($89.0 billion), and pre-tax profit totalled AED 4.3 billion ($1.17 billion). Asset quality also improved, with the non-performing financing ratio falling to 2.4%. The results highlight DIB's ability to grow lending while improving credit quality and maintaining strong capital and liquidity buffers. The combination of healthy financing demand, diversified revenue streams and disciplined risk management positions the bank to support further growth. What to watch Q2 earnings from Mashreq Bank (22 July), Abu Dhabi Commercial Bank (22 July), Emirates NBD (24 July), Abu Dhabi Islamic Bank (24 July) and First Abu Dhabi Bank (27 July), alongside further developments in the UAE's Jaywan payment scheme and digital asset regulation across the GCC. TAB Middle East Weekly Brief is a regular round-up of developments driving transformation in the Middle East banking sector and what to watch.
