Dubai Islamic Bank's board of directors has given the green light to acquire a 25% stake in a new digital banking group in Türkiye.

Although the name of the bank being acquired was not revealed, the lender confirmed the offer is subjected to regulatory approval.

With total assets amounting to $75 billion (TL 1,460 billion) and over 500 branches, Dubai Islamic Bank caters to around 5 million customers globally, supported by a team of over 10,000 employees. Founded in 1975, the bank specializes in participation banking.

Ties between Türkiye and the Arab world are experiencing a significant thaw after years of tense relations.

The two countries have mainly seen their ties affected by regional tensions, including the conflict in Libya, where the UAE and Türkiye have backed opposing sides in recent years.

However, Ankara and Abu Dhabi have moved to put years of tense relations behind them, opening the doors to a new phase in bilateral relations marked by deeper economic cooperation after a years-long dispute.

President Recep Tayyip Erdoğan paid a return visit to the UAE in mid-February, after a trip by MBZ to Ankara in late November 2021 that marked a significant move toward overcoming disputes.

The two countries signed an extensive economic partnership deal in March to boost trade.

Erdoğan said the Comprehensive Economic Partnership Agreement will take economic and trade relations to a new phase. He believes it will increase trade volume between the countries to $25 billion in five years.