Jordan’s Bank al Etihad has signed a Memorandum of Understanding (MoU) to set up a new bank in Abu Dhabi Global Market (ADGM). The deal paves the way for the lender to enter the UAE market.

Its partners in the venture are Ethmar International Holding (EIH), an Abu Dhabi-based institutional investment holding group, and other UAE-based investors.

If completed, the move would extend Bank al Etihad’s presence beyond Jordan and Iraq.

Under the proposal, the new bank would hold a Category 1 banking licence in ADGM.

It would serve regional and international clients, as well as companies doing business in markets outside the UAE mainland.

Bank al Etihad said the new bank would help it support cross-border business and transactions across its target markets.

The lender also plans to use the platform to build relationships with new corporate, institutional and high-net-worth clients.

According to the bank, the move is part of its wider growth strategy. Its goals include diversifying its products and revenue streams, and deepening its links with regional and international markets.

Once established, the bank would operate within ADGM’s regulatory framework and under the supervision of the Financial Services Regulatory Authority (FSRA).

It would also comply with regulatory requirements and controls in both the UAE and Jordan. The launch remains subject to all necessary official approvals.

Featured image: Edited by Fintech News UAE, based on image by Bank al Etihad via its website.