The £107m deal, announced on Sunday, forms part of Barclays’ plan to focus on international markets where it says it has a competitive advantage.
A spokesperson for Barclays said its clients will be given a chance to opt out of the transfer and that ADIB will add “sweeteners” such as rewards and higher limits to its sign up deals.
Barclays also said that, despite the "cultural and mechanical differences between the two banks", the end product would be the same when viewed from a customer’s point of view.
John Vitalo, chief executive, MENA, Barclays, said the decision to sell would allow the company to focus on its businesses in corporate and investment banking and wealth and investment management.
“These businesses are strong, performing well, and have significant future growth potential,” he said. “However, until the transition is complete, we remain committed to fully servicing our clients.”
Tirad Al Mahmoud, chief executive at ADIB, said the acquisition was a “perfect fit” for its expansion into the expatriate market in an area where only 20% of the population are local.
“Our shared goal, with Barclays, is to ensure that the transition is smooth and easy and we look forward to welcoming everyone to ADIB,” he added.
ADIB also said it intends to offer employment to all Barclays’ retail employees who will operate out of the existing branches.
The bank stated that its new, expat clients “should not have an issue” using its bank cards, despite its policy banning non-Shari’a compliant transactions for products such as alcohol, pork products, bars or nightclubs.
The acquisition is subject to UAE Central Bank approval.
The deal is the second of its kind for ADIB, after it bought a stake in Egypt’s National Bank of Development in 2007. Last year, the lender, the second largest Shariah-compliant bank in the UAE, saw its shares increase by 82% amid an equalities rally in the region.
Sam Instone, chief executive at AES International, believes the announcement presents a valuable opportunity for Barclays expatriate clients to take stock of their current banking arrangements.
“It is important that Barclays’ clients don’t go from the frying pan into the fire.
“The ‘ABC’ rule of expatriate banking is, if you are from country A and you live in country B, you must bank in country C.
“This is of the utmost importance for expats and there are a whole host of reasons why. In order to avoid a multitude of problems repeating themselves – it is important the clients take professional advice before making any decisions.”
