According to S&P Global Market Intelligence, the UAE’s banking industry is gaining speed and in the second quarter of 2025 had the most significant quarter-over-quarter rise in market capitalisation among lenders in the Middle East and Africa. In an otherwise diverse regional banking environment, the industry is becoming a ray of strength and stability thanks to economic resiliency, regulatory backing, and strategic innovation.
Abu Dhabi Islamic Bank (ADIB), which reported a 34% increase in market value to reach $21.26 billion at the end of June, is leading this outstanding performance. This increase highlighted ADIB’s growing investor attractiveness and operational resilience, resulting in a three-rank improvement in S&P’s rating of 20 regional banks.
Some creative initiatives, such as the establishment of the UAE’s first fractional sukuk investment platform, which enables retail participation with as little as $1,000 — drastically reducing the traditional entry barrier of $200,000 — and a partnership with Binghatti Holding to offer Shariah-compliant real estate finance, were the main drivers of the bank’s impressive performance.
The foundations of ADIB are still quite strong. The bank’s first-quarter net profit increased by 18% year-over-year to Dh1.9 billion, driven by steady client growth, a strong balance sheet, and growing business momentum. It was the second-best performing lender in the area in 2024, with an average return on equity of 23.5%.
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