First Abu Dhabi Bank, the UAE’s largest lender, plans to raise up to AED 15 billion ($4.1 billion) through a rights issue, in one of the largest capital raises by a Gulf bank in recent years.
The bank’s board approved the proposal on Tuesday, 11 November, and will put it to shareholders at a general assembly on 7 December. The deal still needs shareholder and regulatory approval, and is expected to complete in the first quarter of 2027.
FAB plans to issue just over 1.1 billion new shares at AED 13.52 each, a 30 per cent discount to its closing share price on the Abu Dhabi Securities Exchange on 10 November. The final entitlement ratio, eligibility date and subscription timetable will be announced later.
Mubadala Investment Company, which owns 37.9 per cent of the bank, has said it intends to subscribe for its full pro-rata entitlement, in a show of confidence in the bank’s strategy.
FAB said the proceeds would fund its next phase of growth in the UAE and across its international network, pointing to opportunities from continued growth in global trade, cross-border capital flows and investment in infrastructure, artificial intelligence and digital capacity. The bank is targeting annual loan growth and revenue growth of 10 to 15 per cent, a return on tangible equity above 17 per cent through the cycle, and more than AED 50 billion in cumulative dividends between 2026 and 2031.
“The proposed rights issue will provide additional capacity to capture the growth opportunities in the UAE and across its global franchise,” chief executive Hana Al Rostamani said in a statement.
FAB will act as lead manager, bookrunner and sole receiving bank for the issue, with J.P. Morgan as financial adviser. The bank reported a 6 per cent year-on-year rise in third-quarter profit last month.
Sources: First Abu Dhabi Bank press release (https://www.bankfab.com/en-ae/about-fab/group/in-the-media/fab-board-approves-proposed-aed-15-billion-rights-issue); Reuters (https://www.reuters.com/commentary/breakingviews/fab-rights-issue-may-suit-uae-more-than-investors-2026-11-12/).
