Officials at the National Bank of Sharjah are not commenting on rumor that the financial institution is about to be converted into an Islamic bank under Shariah law, reported Gulf News.
In the meantime, the stock market is reacting without concern. National Bank of Sharjah shares edging up a fil to Dh7.65, with trading volumes of more than Dh1 million. Converting the bank into an institution operating under the tenets of Islamic law, analysts say, would impact negatively on the share price. Such a conversion inevitably leads to higher expenditure in the short term, places margins under pressure.
In the meantime, the bank’s management is seeking shareholder approval to open up 20 percent of the bank to foreign ownership. The Sharjah government holds 42 percent of the shares at the bank. – (Albawaba-MEBG)
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