Dubai's Al Ansari Financial Services completes $200m BFC deal in Bahrain

12/10/1446 06:08 AST

The Dubai-based Al Ansari Financial Services is now the GCC's biggest non-banking financial services company.

The DFM-listed Al Ansari - which also operates the UAE's biggest remittance firm - laid claim to the title after completing the acquisition of Bahrain's BFC Group Holdings.

All the regulatory approvals have been received, which makes it the largest non-banking financial institution in the Gulf in terms of branch network. The buy of BFC Group was made for $200 million, and expands Al Ansari's presence across Bahrain, Kuwait and India. (There is also a takeover process going on in Kuwait.)

In material terms, the BFC deal would raise the Group's customer base by 29% and branch network by 60%.

The Al Ansari stock is trading at Dh0.96 on DFM, with Dh1.06 being the 52-week high.

Al Ansari financials
Al Ansari is projecting immediate gains on its numbers, including a double-digit EBITDA growth.

The consolidated financial impact based on 2024 data include

* An estimated 20% increase in operating income.
* The EBITDA projected to grow by 13%.
* Net profit after tax expected to grow by 13%.
* A stronger cash flow generation, enhancing dividend distribution potential.

"The integration of BFC enhances AAFS's operational scale and geographic diversification, creating substantial value for shareholders, customers, and employees," said a statement.

Right from the time of its IPO, Al Ansari Financial Services had spoken about widening its role outside of the UAE, whether through deals or an organic expansion.

Al Ansari 'intends to replicate its digital model across BFC Group entities further strengthening AAFS's position as a dominant digital-first player in the NBFI landscape', said the statement.

Wider GCC footprint
"With a strengthened market position and an expanded footprint, AAFS is well-positioned to drive sustainable growth across key markets," said a statement.

"The Group remains focused on unlocking new revenue streams, optimising operational efficiencies, and accelerating digital transformation.

"The acquisition of BFC is expected to unlock further opportunities for strategic partnerships, product innovation, and market penetration across key remittance corridors."

Remittance volumes from the UAE and other GCC economies continues to turn in significant growth numbers, helped by the annual increases in their resident base.

The traditional remittance companies have been facing intense competition from fintechs and banks, which has been pointed out by top Al Ansari officials.

This is where the BFC deal should provide further clout and access to a new customer base.

"We are confident that this move will deliver long-term value for our shareholders," said Rashed Al Ansari, Group CEO of Al Ansari Financial Services.

"The anticipated boost in cash flow post-integration reinforces our commitment to providing strong returns for our investors."

Gulfnews