First Abu Dhabi Bank (FAB) declared that, subject to the necessary shareholder and regulatory approvals, its Board of Directors has authorised a plan to raise up to Dhs15 billion through a strategic rights issue. While preserving the capital strength, liquidity, and financial flexibility supporting FAB’s medium-term goals, the proposed issue will provide additional capacity to support the company’s next phase of expansion in the UAE and throughout its global network. FAB’s net revenue has doubled to Dhs21.1 billion since 2020, while its total assets have grown by more than 50% to Dhs1.4 trillion. At 19.2%, return on tangible equity (RoTE) has increased by 6.2 percentage points.
The bank maintained its AA-credit strength while paying out Dhs44 billion in cash dividends to shareholders between 2020 and 2025, or roughly 20% of all cash payouts on the Abu Dhabi Securities Exchange (ADX). During that time, FAB increased its global footprint and became the first Middle Eastern and African bank to open a global banking franchise. Through 25 trade lanes connected to the United Arab Emirates, the Group currently connects clients in over 20 markets.
The proposed rights issue seeks to improve FAB’s capacity to take advantage of growth prospects both domestically and abroad, strengthen client relationships, and encourage ongoing investment in strategic competencies, such as technology and artificial intelligence (AI). FAB’s medium-term framework for 2026–2031 calls for yearly loan and revenue growth of 10–15%, RoTE above 17% over the course of the economic cycle (compared to prior guidance of above 16%), and cumulative dividends above DhsD50 billion. With the cost of risk kept below 70 basis points, Group CET1 (pre-dividend) above 14%, ongoing AA-credit strength, and a variety of funding and liquidity sources, these goals are supported by rigorous risk and capital management.
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