The government is considering the sale of its shares in the First Women Bank Limited (FWBL) to the United Arab Emirates (UAE), and a Negotiation Committee is likely to be established to determine the sale price. The Ministry of Privatization had previously revealed that the UAE government had expressed interest in acquiring the federal government’s shares in FWBL.
Consequently, the federal government decided either to proceed with the bidding process through the Commission or to refer the transaction to the Cabinet Committee on Privatization. This referral would involve the formation of a Negotiation Committee and the approval of a price discovery mechanism and reference price.
The valuation process for the federal government’s shares in FWBL was initiated by the Financial Adviser, adhering to the methodologies outlined in relevant laws. The Federal Cabinet was then requested, in line with the UAE government’s interest and regulatory procedures, to either instruct the Commission to proceed with the bidding process or refer the transaction to the Cabinet Committee on Privatization for further consideration.
After thorough discussions, the Cabinet endorsed the proposal put forth by the Privatization Ministry concerning FWBL. It’s worth noting that FWBL was first included in the Active Privatization Program by the Cabinet Committee on Privatization in 2018. The lack of audited accounts from FY 2018 to FY 2021 had previously impeded the process.
The Financial Advisory Services Agreement, initially set for a two-year duration until January 27, 2022, was extended until April 26, 2023. The PC Board approved a further extension until April 25, 2025, during its 23rd meeting.