National Bank of Egypt absorbs Banque Misr UAE branch operations

The National Bank of Egypt received preliminary approval from the Central Bank of the United Arab Emirates to take over the UAE branch network of fellow state lender Banque Misr on Tuesday, pushing ahead with an asset transfer that follows aggressive US Treasury enforcement against Egyptian financial assets in the Gulf.

The preliminary deal comes within the framework “restructure their banking presence in the United Arab Emirates, in full compliance with applicable UAE legal and regulatory frameworks,” the two state-run lenders announced in a joint statement.

The lenders offered a choreographed display of institutional compliance, completely passing over the unilateral US financial penalties imposed on Banque Misr last month.

According to the joint text, “Banque Misr expresses its sincere gratitude and appreciation to the Central Bank of the UAE (CBUAE) and relevant UAE authorities for their invaluable support and cooperation throughout the bank's operational presence in the country.”

Both institutions emphasized that “the transition will be executed in a structured and coordinated manner, strictly adhering to CBUAE regulations, in close collaboration with all relevant entities, and with full regard for protecting the rights of customers and all stakeholders.”

The planned absorption follows an August statement by the US Department of the Treasury accusing Banque Misr’s Dubai branch of processing $1.8 billion in transactions tied to Iranian-affiliated entities. The Treasury's action formed part of an operation launched by US authorities on Aug. 24, ordered by President Donald Trump under the banner of the “economic ostracization of the Iranian regime.”

The measures ignited immediate fears that punitive US designations would expand to Banque Misr’s Cairo headquarters. US Treasury Secretary Scott Bessent sought to tamp down systemic contagion fears in early September, asserting that the parent institution was not targeted. 

In a subsequent appearance on CBC News, however, Bessent made clear that US pressure would shutter Banque Misr’s Dubai footprint entirely.

Banque Misr operates five branches across the UAE, according to Asharq Bloomberg, while the National Bank of Egypt maintains a single branch inside the Dubai International Financial Center alongside a representative office in Dubai.