Dubai orders bank takeover of troubled Dubai Bank

DUBAI, United Arab Emirates (AP)- Dubai’s ruler has ordered Emirates NBD bank to take over the struggling Dubai Bank, which the emirate’s government came to the aid of earlier this year.

The city-state’s media office said on Tuesday that the order by Sheik Mohammed bin Rashid Al Maktoum reflects the government’s “efforts to enhance the banking sector in the emirate.”

Dubai’s government in May unexpectedly said it was taking over cash-strapped Dubai Bank. It vowed at the time to immediately pump an undisclosed amount of fresh funds into the bank.

Before the government takeover, Dubai Bank was jointly owned by the Dubai ruler’s investment company and Emaar Properties, the developer of the world’s tallest building, Burj Khalifa.