Published: 2026-08-26
The board of Abu Dhabi Islamic Bank (ADIB) approved a proposal on 2026-08-25 to raise AED 1.75 billion (about USD 476 million) through a rights issue that will fund the next phase of the bank’s Vision 2035 strategy. The offer consists of 106,383,000 new ordinary shares at AED 16.45 each (AED 1 nominal value plus an AED 15.45 premium), a discount of about 28.8% to the closing price of AED 23.10 on the Abu Dhabi Securities Exchange on 2026-08-24. Eligible shareholders will be able to subscribe for roughly one new share for every 34.14 shares they already hold. The bank’s major shareholders have confirmed that they intend to take part. The announcement came a month after ADIB reported that its total assets reached AED 304 billion at the end of June 2026, the first time in its history above AED 300 billion, with a return on equity of 28% in the first half and net profit after tax of AED 3.8 billion. The rights issue still needs the approval of shareholders and regulators, including the Central Bank of the UAE.
The terms of the proposed rights issue
A rights issue is an offer of new shares to existing shareholders in proportion to their current holdings. Unlike an IPO or a private placement, it does not bring in new outside investors by default: each shareholder receives a right to buy a fixed number of new shares at a set price, and the discount to the market price is the incentive to exercise that right. For ADIB, the key parameters disclosed on 2026-08-25 are as follows.
| Parameter | Value |
|---|---|
| Amount to be raised | AED 1.75 billion (about USD 476 million) |
| New ordinary shares | 106,383,000 |
| Issue price per share | AED 16.45 (AED 1 nominal + AED 15.45 premium) |
| Reference closing price (ADX, 2026-08-24) | AED 23.10 |
| Discount to reference price | about 28.8% |
| Subscription ratio | about 1 new share per 34.14 existing shares |
| Purpose | Next phase of growth under Vision 2035 |
| Approvals required | Shareholders, Central Bank of the UAE and other regulators |
The ratio and the final terms remain subject to rounding arrangements and to the approvals listed above. The bank has not yet published the date of the general meeting, the record date or the subscription window: those details will follow once the shareholder and regulatory process is complete. Nor has it broken down how the proceeds will be allocated beyond the general statement that they support growth under Vision 2035.
Why ADIB is raising capital now
The balance sheet numbers explain the timing. ADIB’s total assets grew 24% in 2025 and reached AED 304 billion on 2026-06-30, up 17% year on year and 8% since the end of 2025. Gross customer financing rose 26% year on year to AED 210 billion, an increase of AED 43 billion, of which AED 24 billion was added in the first six months of 2026 alone. Customer deposits climbed 15% to AED 246 billion, with current and savings accounts making up 64% of the total. Financing growth at that pace consumes regulatory capital, and a rights issue is the most direct way for a bank to replenish it while keeping its ownership structure intact.
Profitability has kept up with the expansion. Net profit after tax was AED 3.8 billion in the first half of 2026, up 8%, and net profit before tax rose 9% to AED 4.3 billion on revenue of AED 6.5 billion. The return on equity was 28% in 2024, 29% in 2025 and 28% in the first half of 2026. The cost-to-income ratio stood at 29% for the half year and 28.3% in the second quarter, while the non-performing asset ratio fell to a record low of 2.2%. For the full year 2025 the bank earned AED 7.1 billion after tax, up 16%, on revenue of AED 12.3 billion, and distributed AED 3.5 billion in dividends, including a final dividend of 97 fils per share.
Jawaan Awaidha Suhail Al Khaili, Chairman of ADIB, said that the bank had delivered several years of healthy and consistent growth and that the proposed rights issue reflected the board’s confidence in the opportunities ahead as the bank advances Vision 2035. Group Chief Executive Officer Mohamed Abdelbary described crossing AED 300 billion in total assets as an important milestone and said the bank aims to sustain healthy, profitable growth, deploy capital efficiently and deliver attractive long-term returns for shareholders.
What Vision 2035 covers
Vision 2035 is ADIB’s stated ambition to become the world’s most innovative Islamic bank. The chairman first described it publicly in January 2026, alongside the 2025 results, as a five-year plan to drive the next phase of growth, transformation and long-term value creation. The bank has since positioned artificial intelligence as one of the principal enablers of the strategy: on 2026-08-21 it appointed Pedro Uria-Recio, formerly Chief Data and Artificial Intelligence Officer at CIMB Bank in Malaysia, as its first Chief AI Officer. ADIB serves 2.7 million customers, and 94% of its transactions already run through digital channels, which is the base the new capital is meant to build on. The bank has not published numerical targets for Vision 2035, so any projections of future asset or profit levels would be speculation rather than disclosure.
How this fits the wider UAE banking picture
ADIB’s capital raise arrives in a year when UAE banks as a group are reporting record earnings and rapid loan growth. Listed companies on the Abu Dhabi Securities Exchange lifted their combined profit by 38% in the first half of 2026, and the banking sector’s 2025 results set a new high, as we covered in our review of UAE banks’ record 2025 profits and the ADX first-half 2026 results. Central Bank of the UAE data shows credit expanding across both the corporate and the retail segments, and the largest lenders are investing in digital onboarding and paperless products, such as FAB’s paperless personal loans. A rights issue by the country’s largest Islamic bank by market capitalisation on ADX is consistent with that pattern: lenders are growing faster than retained earnings alone can support, and they are turning to shareholders for the difference.
For a company based in the UAE, the practical significance is indirect but real. Well-capitalised banks with low non-performing ratios have more room to extend financing to businesses, and Islamic banks such as ADIB compete for corporate accounts, trade finance and asset finance alongside conventional lenders. Whether a bank is Sharia-compliant or conventional does not change the onboarding requirements a new company faces: licence, shareholder documents, proof of business substance, source of funds and a realistic account-activity profile. What differs is the product structure, with murabaha, ijara and wakala arrangements replacing interest-based loans and deposits.
What to check before choosing a UAE bank for a new company
Bank selection is one of the decisions that most affects how quickly a new UAE company becomes operational. A short checklist, based on the requirements we see in practice:
- Confirm that the bank accepts your licence type and free zone or mainland jurisdiction: policies differ between banks and change over time.
- Check the minimum balance and the fall-below fee for the business current account, and whether a relationship manager is assigned.
- Ask how long onboarding takes for your ownership structure: a single UAE-resident shareholder is usually the fastest case, layered foreign holding companies the slowest.
- Prepare a business plan or activity description with expected monthly turnover, counterparties and countries of payment: compliance teams review this before approving the account.
- Decide whether you need an Islamic or a conventional bank and whether the products you rely on, such as trade finance lines or corporate cards, are available in that format.
- Make sure the signatory holds a UAE residence visa and Emirates ID, since most banks require this before activating the account.
How Atlant Capital can help
Atlant Capital assists foreign founders with company setup in the UAE and with corporate bank account opening, including selecting a bank whose policies fit the client’s licence, ownership structure and expected transaction profile, preparing the document pack and the activity description, and accompanying the client through compliance queries. We work with both Islamic and conventional banks and explain the differences in product structure before the application is filed, so that the account, once opened, supports the way the business actually operates.
Conclusion
ADIB’s proposed AED 1.75 billion rights issue is a capital-raising step that follows two years of rapid balance-sheet growth: assets up 24% in 2025 and past AED 304 billion by June 2026, financing up 26% year on year, and a return on equity that has held between 28% and 29% since 2024. The 106,383,000 new shares at AED 16.45 will be offered to existing holders at roughly one for 34.14, with major shareholders already committed and the Central Bank of the UAE among the approvals still required. The timetable, record date and subscription period will be published once those approvals are in place. For businesses operating in the UAE, the announcement is another indication that the country’s banks are expanding their lending capacity, which is the backdrop against which corporate banking decisions are being made in 2026.
FAQ
How much is ADIB raising in its 2026 rights issue?
ADIB’s board approved a proposal on 2026-08-25 to raise AED 1.75 billion, about USD 476 million, by issuing 106,383,000 new ordinary shares at AED 16.45 each. The issue price is made up of AED 1 nominal value and an AED 15.45 premium. The proposal is subject to approval by shareholders and by regulators including the Central Bank of the UAE.
What is the discount and the subscription ratio of the ADIB rights issue?
The issue price of AED 16.45 represents a discount of about 28.8% to ADIB’s closing price of AED 23.10 on the Abu Dhabi Securities Exchange on 2026-08-24. Eligible shareholders will be entitled to subscribe for approximately one new share for every 34.14 existing shares, subject to final terms and rounding. The record date and the subscription period have not yet been announced.
Why is ADIB raising capital?
The bank says the proceeds will support the next phase of growth under its Vision 2035 strategy. Its balance sheet has been expanding quickly: total assets grew 24% in 2025 and reached AED 304 billion on 2026-06-30, while gross customer financing rose 26% year on year to AED 210 billion. Additional equity allows the bank to keep growing its financing book within regulatory capital limits.
How profitable is ADIB?
ADIB reported net profit after tax of AED 3.8 billion for the first half of 2026, up 8%, with revenue of AED 6.5 billion and a return on equity of 28%. For the full year 2025 it earned AED 7.1 billion after tax, up 16%, on revenue of AED 12.3 billion, and paid AED 3.5 billion in dividends. Its non-performing asset ratio fell to a record low of 2.2% in June 2026.
