Three banks in the United Arab Emirates say they will merge into one institution with assets of $114 billion.

Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank made the announcement on Tuesday after markets closed in the UAE.

Abu Dhabi Commercial Bank and Union National Bank plan to operate under the name of Abu Dhabi Commercial Bank. Al Hilal Bank will retain its name and operate as a separate Islamic bank within the group.

The merger would create the third-largest bank in the UAE by value and the fifth-largest in the wider Gulf Cooperation Council.

The merger comes amid other mergers in the UAE as the oil-rich country's economy has slowed down over lower energy prices, a sluggish real estate market and its ongoing military campaign in Yemen.