The merger of National Bank of Abu Dhabi and First Gulf Bank has won board approval, creating a banking heavyweight with $175 billion in assets, part of the emirate's plan to revamp its economy hit by low oil prices.

The newly-branded National Bank of Abu Dhabi will become one of the Middle East and Africa's biggest banks when the tie-up is completed in the first quarter of next year.The tie-up comes as the Gulf's oil-rich countries take steps to diversify their economies after two years of lower oil prices.

With a combined market value of $29.1 billion as of June 30th, the new Abu Dhabi bank will overtake the likes of Britain's Standard Chartered and Royal Bank of Scotland, and France's Credit Agricole. – (Reuters)