First Abu Dhabi Bank (FAB) has announced that its Board of Directors has approved a proposal to raise up to AED15 billion through a rights issue, with new shares priced at AED13.52 each. The transaction remains subject to shareholder and regulatory approvals.
The proposed capital increase is designed to strengthen FAB’s financial position and support its next phase of expansion across the UAE and international markets. It will also provide additional resources for investment in technology, artificial intelligence (AI) and other strategic growth opportunities.
FAB has recorded significant financial growth in recent years. Since 2020, the bank’s total assets have increased by more than 50 percent to AED1.4 trillion, while net income has doubled to AED21.1 billion. Its return on tangible equity (RoTE) has also improved by 6.2 percentage points to 19.2 percent.
Between 2020 and 2025, FAB distributed AED44 billion in cash dividends, accounting for nearly 20 percent of total cash dividends paid by companies listed on the Abu Dhabi Securities Exchange (ADX). The bank has also maintained its AA- credit rating.
The bank has strengthened its international operations, establishing a presence in more than 20 markets and connecting customers through 25 trade corridors linked to the UAE.
FAB Sets Ambitious Growth Targets for 2026–2031
Under its medium-term strategy covering 2026 to 2031, FAB aims to achieve annual loan and revenue growth of 10 to 15 percent while maintaining RoTE above 17 percent throughout the economic cycle. This represents an increase from its previous target of more than 16 percent.
The bank also expects to distribute cumulative dividends exceeding AED50 billion during the period.
To support these objectives, FAB plans to maintain disciplined financial management, keeping its cost of risk below 70 basis points and its pre-dividend Common Equity Tier 1 (CET1) capital ratio above 14 percent.
FAB expects its expansion strategy to benefit from increasing global trade, international investment flows and growing demand for infrastructure financing, digital services and AI-related investments.
The bank also highlighted expectations of approximately 5 percent real GDP growth over the 2026–2031 period as a factor supporting opportunities across banking, investment, wealth management and trade finance.
FAB Leadership Highlights Long-Term Economic Opportunities
H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, highlighted the UAE’s continued economic transformation, supported by diversification, innovation, investment and its expanding role in international trade.
He emphasised that FAB remains an important financial partner in advancing major investment projects within the UAE and overseas.
According to Sheikh Tahnoon, the proposed rights issue will strengthen the bank’s ability to support the country’s long-term economic priorities while pursuing emerging business opportunities.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said the bank has developed a diversified international banking business supported by consistent financial performance, profitability and shareholder returns.
She described the AED15 billion capital-raising proposal as an important step in accelerating FAB’s expansion and reinforcing its position in international banking.
Al Rostamani added that the bank would continue to allocate capital carefully, prioritising investments that strengthen competitiveness, expand its global presence and generate sustainable shareholder value.
FAB to Issue More Than 1.1 Billion New Shares
Under the proposed transaction, FAB plans to issue 1,109,467,456 new shares at AED13.52 per share, generating approximately AED15 billion in gross proceeds.
The subscription price represents a 30 percent discount to the bank’s closing share price on ADX on November 10, 2026.
Existing eligible shareholders will have the opportunity to purchase additional shares according to their proportional holdings, allowing them to maintain their ownership stakes.
Mubadala Investment Company PJSC, FAB’s largest shareholder, has indicated its intention to subscribe for its full proportional entitlement, demonstrating continued support for the bank’s long-term growth strategy.
Shareholder Approval Scheduled for December 7
FAB plans to seek shareholder approval for the proposed rights issue at a General Assembly meeting scheduled for December 7, 2026, subject to the necessary regulatory approvals.
Following approval, the bank will disclose the final entitlement ratio, eligibility date, rights-trading period, ex-rights date and subscription timetable.
The transaction is expected to be completed during the first quarter of 2027.
FAB will serve as Lead Manager, Bookrunner and Sole Receiving Bank for the transaction. J.P. Morgan has been appointed as financial adviser, while Allen Overy Shearman Sterling will act as legal adviser.
