UAE banks keep tapping shareholders to fund lending; FAB could make the biggest raise yet

UAE banks are lining up to raise fresh equity as lending outpaces deposits, and the biggest may be yet to come. Abu Dhabi Islamic Bank’s (ADIB) AED 1.75 bn rights issue opens for subscription today, the fourth UAE bank raise since mid-2025, bringing the total to c. AED 11.5 bn. Meanwhile, First Abu Dhabi Bank (FAB) is in early talks about a rights issue of around USD 5 bn (c. AED 18.4 bn), Bloomberg reports, citing people it says are familiar with the matter. That would be about triple thebiggest rights issue ever done on the ADX. FAB declined to comment and may not proceed.

ADIB’s subscription runs until 24 November. Shareholders can buy new shares at AED 16.45 each, 28.8% below its closing price the day before its board approved the raise in August. The rights trade on the ADX until 16 November, and the new shares are due to start trading on 18 December. We reported the timetable last month.

FAB’s plans are still early. Executives have held informal talks with several large Wall Street banks, though it’s unclear whether any have been hired, and the size could change. One of Bloomberg’s sources said the money would go toward prospects in the UAE.

FAB would be joining a queue. Before ADIB, three UAE banks raised money from shareholders:

• Abu Dhabi Commercial Bank’s (ADCB) AED 6.1 bn in December;
• United Arab Bank’s AED 1.03 bn in 3Q 2025;
• Sharjah Islamic Bank’s (SIB) AED 2.59 bn in May.

Why it matters: The raises are about keeping up with lending. Credit growth outpaced deposit growth in 2Q, pushing banks to pay up for deposits. Fresh equity lets banks keep lending without stretching their capital ratios. SIB’s capital adequacy ratio rose to 19.5% at the end of June from 16.2% at the end of 2025, and the bank credited much of the increase to its raise. ADCB said its raise would keep it ahead of tighter capital rules for systemically important banks.

This is what market analysts told us to expect: With IPOs scarce all year (the UAE didn’t get its first listing announcement of 2026 until Dubai Investments announced its plan to float DIP Holding last month), analysts told us in September to expect more rights issues and follow-on offerings from established, liquid names in 4Q 2026 and early 2027.

Investors have shown up so far. SIB’s issue was 3.2x oversubscribed, with foreign investors accounting for 55% of demand. It was the first major UAE equity raise since the war began. ADCB drew more than AED 12 bn in commitments for its AED 6.1 bn issue, with Mubadala, its largest shareholder, taking up its full entitlement.

What’s next: ADIB’s subscription closes on 24 November, and the take-up will be the first read on demand since SIB in May. For FAB, watch for it to mandate banks, secure board approval, and obtain a shareholder vote — steps required by every earlier raise. Mubadala is also a top FAB shareholder, so whether it commits to its full share will set the tone, as it did for ADCB.