First Abu Dhabi Bank Charts Ambitious Growth with AED15 Billion Rights Issue

FAB's board has approved a strategic capital raise to fund expansion across the UAE and its growing international network, underpinned by a robust track record of profitability and shareholder returns.

The trajectory of First Abu Dhabi Bank over recent years tells a story of disciplined expansion and institutional confidence. Since 2020, the bank’s total assets have swelled to AED1.4 trillion, a surge of more than 50 percent, whilst net income has doubled to AED21.1 billion. These figures reflect not merely growth, but a deepening of the institution’s capacity to serve clients across an expanding geographical footprint.

FAB’s Board of Directors has now approved a proposal to raise up to AED15 billion through a rights issue at AED13.52 per share, subject to shareholder and regulatory approval. The capital raise represents a strategic manoeuvre to fuel the bank’s next phase of development, both within the UAE and through its international operations, which now span more than 20 markets. The new shares will represent approximately 1.1 billion units, offered at a 30 percent discount to the bank’s closing share price on the Abu Dhabi Securities Exchange on 10th November, 2026.

The performance metrics underlying this expansion reveal an institution in disciplined command of its trajectory. Return on tangible equity has risen to 19.2 percent, an increase of 6.2 percentage points from 2020. Between 2020 and 2025, FAB distributed AED44 billion in cash dividends to shareholders, accounting for nearly 20 percent of all dividends on the ADX, whilst maintaining an AA- credit strength rating throughout. This combination of generous shareholder returns and prudent capital management speaks to the bank’s foundational stability.

The proposed capital raise is designed to strengthen FAB’s competitive position as it pursues a medium-term framework targeting annual loan and revenue growth of 10 to 15 percent through 2031. Return on tangible equity is expected to exceed 17 percent throughout economic cycles, with cumulative dividends projected to surpass AED50 billion. These ambitions rest upon disciplined risk management, with the cost of risk maintained below 70 basis points and Group CET1 (pre-dividend) above 14 percent.

H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, noted that the UAE continues to advance an ambitious long-term economic agenda centred on diversification, investment and innovation. The bank, he observed, plays a central role in supporting strategic investments within the nation and internationally, with the proposed rights issue further strengthening its ability to capture emerging opportunities. Hana Al Rostamani, Group Chief Executive Officer, described the capital raise as a strategic step towards accelerating growth whilst strengthening FAB’s position as a leading global banking franchise, emphasising disciplined capital deployment focused on opportunities that enhance competitive positioning and deliver sustainable shareholder returns.

The expansion of FAB’s international presence has been marked by particular distinction: it became the first bank from the Middle East and Africa to establish a global banking franchise, now connecting clients through 25 UAE-linked trade corridors. This international reach, coupled with expected real GDP growth of around 5 percent over the medium-term planning horizon, positions the bank to capitalise on expanding global trade flows, cross-border capital movements and investments in critical infrastructure and digital capabilities.

Mubadala Investment Company PJSC, FAB’s largest shareholder, has indicated its intention to subscribe for its full pro-rata entitlement, reflecting sustained confidence in the bank’s strategic direction. Shareholders will be invited to approve the proposed rights issue at a General Assembly meeting scheduled for 7th December, 2026. Following the necessary regulatory and shareholder approvals, the transaction is expected to complete in the first quarter of 2027.

Source: WAM

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