11 November 2026
First Abu Dhabi Bank (FAB), the largest bank in the UAE, plans to raise up to AED 15 billion through a rights issue. On 11 November 2026 its Board of Directors approved the issue of 1,109,467,456 new shares at AED 13.52 each, a 30% discount to the closing share price on the Abu Dhabi Securities Exchange (ADX) on 10 November 2026. Mubadala Investment Company, which holds 37.9% of the bank, intends to take up its full entitlement. Shareholders vote at a General Assembly on 7 December 2026, and the transaction is expected to complete in the first quarter of 2027, subject to regulatory approvals.
What FAB announced
The rights issue is a capital increase offered first to existing shareholders. Every eligible shareholder receives the right to buy new shares in proportion to the shares already held, so those who subscribe keep their percentage of ownership. FAB set the subscription price at AED 13.52 per share. Multiplying the 1,109,467,456 new shares by that price gives gross proceeds of AED 15 billion.
The bank describes the raise as a step taken from a position of strength. The new capital is meant to provide additional capacity for growth in the UAE and across the group’s international franchise, while keeping the capital strength, liquidity and financial flexibility behind its medium-term targets.
Key terms at a glance
| Term | Detail |
|---|---|
| Amount | Up to AED 15 billion gross proceeds |
| New shares | 1,109,467,456 |
| Price per share | AED 13.52 |
| Discount | 30% to the ADX closing price on 10 November 2026 |
| Largest shareholder | Mubadala, 37.9%, intends to subscribe in full |
| General Assembly | 7 December 2026 |
| Expected completion | First quarter of 2027 |
| Lead Manager, Bookrunner, Sole Receiving Bank | First Abu Dhabi Bank |
| Financial Advisor | J.P. Morgan |
| Legal Advisor to FAB | Allen Overy Shearman Sterling |
Mubadala and the shareholder vote
Mubadala Investment Company PJSC is FAB’s largest shareholder with 37.9%. It has said it intends to subscribe for its full pro rata entitlement, which FAB presents as a sign of continued confidence in its strategy. On simple arithmetic, a full take-up of a 37.9% entitlement in an AED 15 billion issue is about AED 5.7 billion.
The proposal still needs two sets of approvals. Shareholders will vote at a General Assembly meeting on 7 December 2026, and the required regulatory approvals must also be in place. Only after both will FAB announce the final terms: the entitlement ratio, the eligibility date, the ex-rights date, the rights trading period and the subscription period. None of these dates has been published yet.
Where the money is meant to go
FAB links the raise to a growth plan in the UAE and in its international network, which covers more than 20 markets and 25 UAE-linked trade corridors. According to the bank, the capital will support deeper client relationships and diversified growth, alongside continued investment in technology and AI.
The bank points to several structural trends behind the demand for financing: growth in global trade, cross-border capital flows and investment in critical infrastructure, AI and digital capacity, with the UAE and the wider region positioned as a hub connecting these flows. FAB also cites expected real GDP growth of around 5% over 2026-2031.
Targets for 2026-2031
Together with the rights issue, FAB set out a medium-term framework for the period 2026-2031:
- loan growth of 10-15% per year;
- revenue growth of 10-15% per year;
- return on tangible equity (RoTE) above 17% through the cycle, up from previous guidance of above 16%;
- more than AED 50 billion of cumulative dividends;
- cost of risk below 70 basis points;
- group CET1 ratio (pre-dividend) above 14%;
- continued AA- credit strength.
FAB’s track record since 2020
FAB backs the plan with its results over the last five years. Since 2020 its total assets have grown by more than 50% to AED 1.4 trillion, net income has doubled to AED 21.1 billion and RoTE has risen by 6.2 percentage points to 19.2%. Between 2020 and 2025 the bank returned AED 44 billion in cash dividends, nearly 20% of all cash dividends paid on ADX.
The latest quarter fits this picture. As we reported in our article on FAB third quarter 2026 results, net profit for July to September 2026 was AED 5.73 billion, and total assets reached AED 1.47 trillion at the end of September.
FAB is not the first UAE bank to turn to its shareholders for growth capital this year. In August 2026 the board of Abu Dhabi Islamic Bank approved an AED 1.75 billion rights issue. At AED 15 billion against AED 1.75 billion, the FAB proposal is more than eight times that size.
What the bank’s leaders said
His Highness Sheikh Tahnoon Bin Zayed Al Nahyan, Chairman of FAB, said the UAE continues to advance an ambitious long-term economic agenda built on diversification, investment, innovation and a growing role in global trade and capital flows, and that the rights issue will strengthen FAB’s ability to support the country’s ambitions.
Group Chief Executive Officer Hana Al Rostamani called the AED 15 billion issue a strategic step that will accelerate the bank’s next phase of growth. She said FAB will deploy the capital with discipline and focus on opportunities that deepen its competitive position and deliver sustainable returns to shareholders.
What it means for businesses in the UAE
For companies that bank in the UAE, the rights issue does not change account opening rules, tariffs or lending criteria at FAB. The bank’s stated aim is to grow loans by 10-15% a year until 2031, and the new capital gives it more room to lend, but each application is still assessed on its own merits. The usual compliance review with a trade licence, constitutional documents, shareholder identification and proof of activity stays the same. Our guide to opening a bank account in the UAE explains those steps in detail.
For companies, family offices and individuals that already hold FAB shares, there are concrete points to note:
- the General Assembly that votes on the proposal is scheduled for 7 December 2026;
- new shares will be offered at AED 13.52 in proportion to existing holdings;
- shareholders who subscribe keep their percentage of ownership, those who do not will hold a smaller share of an enlarged capital;
- the entitlement ratio, eligibility date and subscription period will be published only after shareholder and regulatory approvals;
- FAB itself acts as the sole receiving bank for subscriptions.
How Atlant Capital can help
Atlant Capital helps founders choose a bank that fits their activity and shareholder profile and prepares the file for corporate bank account opening in the UAE, including answers to questions from the compliance team. For new businesses we start one step earlier with company setup in the UAE, so that the licence, activities and ownership structure match what banks expect to see.
Conclusion
FAB plans to raise AED 15 billion by issuing 1,109,467,456 new shares at AED 13.52, a 30% discount to the 10 November 2026 close. Mubadala, with 37.9%, intends to subscribe in full. The vote is on 7 December 2026, final terms will follow after approvals, and completion is expected in the first quarter of 2027. The bank targets 10-15% annual loan and revenue growth and more than AED 50 billion of dividends over 2026-2031.
Source: FAB, Board approves proposed AED 15 billion rights issue, Khaleej Times.
FAQ
How much is First Abu Dhabi Bank raising in its rights issue?
FAB plans to raise up to AED 15 billion in gross proceeds by issuing 1,109,467,456 new shares at AED 13.52 each. The Board of Directors approved the proposal on 11 November 2026. It still requires shareholder and regulatory approvals.
What is the FAB rights issue price and discount?
The new shares are priced at AED 13.52 per share. This is a 30% discount to FAB’s closing share price on the Abu Dhabi Securities Exchange on 10 November 2026. Eligible shareholders can subscribe in proportion to their existing holdings.
When do FAB shareholders vote on the rights issue?
The General Assembly meeting is scheduled for 7 December 2026. After shareholder and regulatory approvals, FAB will announce the entitlement ratio, eligibility date, ex-rights date and subscription period. Completion is expected in the first quarter of 2027.
Will Mubadala take part in the FAB rights issue?
Yes. Mubadala Investment Company, FAB’s largest shareholder with 37.9%, intends to subscribe for its full pro rata entitlement. On that stake, a full take-up equals about AED 5.7 billion of the AED 15 billion issue.
