Contrary to conventional wisdom the pending merger between Emirates Bank and National Bank of Dubai does not signify the beginning of a wave of bank mergers throughout the Gulf Cooperation Council countries. While some of these countries are believed to be "overbanked," notably the UAE, the factors that normally set off M&As - fewer opportunities for internal growth and reduced profits - are conspicuously absent. The industry is not on the brink of consolidation - yet. Nevertheless, regional players should further consolidate now to prepare for challenges ahead.
