Qatar's Commercial Bank (PSQC) is said to have agreed, in principle, to sell its 40% stake in United Arab Emirates-based United Arab Bank PJSC to private equity firm Tabarak Investment.

"One source aware of the matter" told Reuters that a formal announcement of the deal could be made in March. Another source said the sale should be finalized by May or June.

Based on United Arab Bank's current market capitalization, the Qatari lender's 40% stake is worth 1.3 billion United Arab Emirates dirhams, the report noted.

In September 2017, Commercial Bank gave Tabarak Investment a 90-day exclusivity period to negotiate the terms of the potential sale, which was later extended by 30 days. A spokesman for the private equity firm said the deal "is not final yet," Reuters noted.

As of Feb. 19, US$1 was equivalent to 3.67 United Arab Emirates dirhams.