FAB Plans $4.1B Rights Issue to Fund Growth Through 2031
The UAE's largest lender by assets will offer 1.1 billion new shares at a 30% discount, with Mubadala committing to its full entitlement.
First Abu Dhabi Bank intends to raise as much as $4.1 billion (AED 15 billion) through a rights issue, capital the lender says it will put toward domestic growth, its international network, and technology and AI investment. The bank's board has approved the plan.
The offer covers more than 1.1 billion new shares priced at $3.7 (AED 13.52) each. That is 30% below where FAB's shares closed on the Abu Dhabi Securities Exchange on November 10, 2026. Existing shareholders can subscribe pro rata to hold their current ownership levels.
Mubadala Investment Company, which owns 37.9% of FAB and is its largest shareholder, plans to take up its full entitlement. FAB will ask shareholders to approve the capital increase at a General Assembly meeting set for December 7, 2026, subject to regulatory clearance. The transaction also needs sign-off from regulators and is expected to close in the first quarter of 2027.
FAB is acting as lead manager, bookrunner and sole receiving bank on the issue, with JP Morgan appointed financial adviser.
Growth targets and a dividend commitment
The bank is aiming for annual loan and revenue growth of 10% to 15% between 2026 and 2031, a return on tangible equity above 17%, and more than $13.6 billion (AED 50 billion) in cumulative dividends over the same period.
Group CEO Hana Al Rostamani said the capital increase would help the bank capture growth opportunities in its domestic operations and established international network, and support its competitive position alongside sustainable shareholder returns.
A balance sheet that has doubled its earnings
FAB's balance sheet has expanded by more than 50% since 2020. Net income doubled over the same stretch, reaching $5.7 billion (AED 21.1 billion) in 2025.
Those results were reported on October 29. Net profit for the first nine months of 2026 came in at $4.5 billion (AED 16.46 billion), up 3% year on year. FAB placed ninth on a 2026 ranking of the 100 most valuable companies in the Middle East.
The timing reflects how Gulf banks are competing for scale. A lender with FAB's balance sheet can fund growth from retained earnings for a while, but a 10% to 15% loan growth target sustained to 2031 outruns what internal capital generation alone comfortably covers, particularly while paying out tens of billions in dividends. Bringing in fresh equity now, at a discount that makes participation attractive, locks in the capital before that gap opens. Mubadala's decision to take its full share removes the biggest question mark over whether the raise would clear.
