United Arab Bank (UAB), listed on the Abu Dhabi Securities Exchange (ADX), has successfully completed a capital increase through a Rights Issue, raising AED 1.031 billion. The transaction concluded on 29 July 2025, boosting the Bank’s issued capital from AED 2.062 billion to AED 3.093 billion, with newly issued shares priced at AED 1 per share.
The Rights Issue was oversubscribed, demonstrating investor confidence in UAB’s fundamentals and validating the Bank’s ongoing turnaround strategy. All required regulatory approvals were secured from the Central Bank of the UAE (CBUAE), the Securities and Commodities Authority (SCA), and the ADX.
Commenting on the milestone, H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors, expressed gratitude to shareholders for their trust:
“The strong response we have received will further strengthen our balance sheet, mark a new chapter in UAB’s progress, and reaffirm our commitment to delivering value to our shareholders. It will enhance our financial resilience and position us to continue contributing to the UAE economy and its sustainable development agenda.”
He also acknowledged the support of regulatory authorities and transaction partners in the process:
“We extend our sincere appreciation to the CBUAE, SCA, ADX, and all our partners whose collaboration ensured the success of this Rights Issue.”
Shirish Bhide, CEO of United Arab Bank, highlighted the strategic significance of the capital raise:
“The success of the Rights Issue reflects the confidence our shareholders have in the Bank and our future endeavours. This represents a key milestone in strengthening UAB’s capital position and supports the next phase of our sustainable growth strategy.”
The newly raised capital will be used to strengthen the Bank’s capital base, ensure regulatory compliance, and support future business expansion, aligning with the Bank’s long-term goals of delivering sustainable returns and enhancing client service capabilities.
UAB reported strong financial performance for the first half of 2025:
- Net profit rose by 50% year-on-year to AED 208 million (H1 2024: AED 139 million)
- Total income increased by 24% to AED 374 million
These results reflect the positive impact of the Bank’s strategic initiatives and improving market confidence.
First Abu Dhabi Bank (FAB) served as Lead Manager and Bookrunner for the Rights Issue, while Al Tamimi & Co. acted as Legal Adviser.
UAB’s successful capital raise reinforces its commitment to delivering shareholder value, supporting client growth, and contributing to the UAE’s financial ecosystem.
