Dubai Islamic Bank, the UAE's biggest Sharia-compliant lender by assets, is acquiring a 20 per cent stake in Turkey's TOM Group of Companies, marking its entry into the nation's banking sector.
The move will make DIB a “significant minority shareholder” of Istanbul-based TOM, which owns a digital bank, with an option to increase its stake to 25 per cent within 12 months, DIB said in a statement to the Dubai Financial Market, where its shares are traded.
The transaction, which has been approved by authorities in Turkey and the UAE, will be formalised after clearance from the Turkish Competition Authority, it said.
The value of DIB's acquisition in TOM – formally Technology of Money – was not disclosed. TOM's founding shareholder is Aydin Group, the operator of one of Turkey's largest retail ecosystems.
DIB's entry into the Turkish market will help its strategy of providing financial services to mass population segments, including the underbanked and non-banked segments, Adnan Chilwan, group chief executive of DIB, said.
“Central to our growth ambitions has been the bank's ability to effectively formulate winning strategies amidst shifting industry dynamics,” said Mr Chilwan.
“Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment … we believe this deal in Turkey will lay the groundwork for further initiatives in other key strategic markets for DIB.”
DIB's entry into Turkey comes at a time when the country's banking sector is experiencing a revival.
The operating environment for banks in Turkey remains challenging but recent government steps to move away from unconventional policymaking could ease headwinds for lenders in the country, Moody's Investors Service said in a report last month.
The rating agency revised its outlook for the country's banking sector to stable, boosting shares of the nation’s lenders to all-time highs.
The funding profile of Turkish lenders has also improved amid strong liquidity, despite lingering downside risks, it said.
Digital banking and FinTech services, meanwhile, have grown to become a crucial platform for consumers, allowing them to gain access to banking services from just about anywhere through mobile devices and other channels.
These services are also being promoted by banks in order to grow their customer base and implement the latest technologies to provide seamless and more convenient services.
TOM, through its partnership with DIB, aims to provide affordable financial services to its customers, said TOM group chief executive Onur Ozkan.
“We hope to make TOM Group a regional and a global leader in digital participation banking, aiming to provide access to financial services and promote inclusivity by encompassing segments beyond the traditional banking system,” said Mr Ozkan.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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