Abu Dhabi Commercial Bank to Raise Dh6.1 Billion for Growth

Abu Dhabi Commercial Bank (ADCB) has announced a major step to raise Dh6.1 billion through a rights issue. This move will strengthen its capital base, support expansion plans, and keep the bank ahead in the UAE’s competitive banking market.

Expanding Capital Through Rights Issue

ADCB’s Board of Directors has approved the increase in share capital. With this rights issue, the bank’s capital will rise from Dh7.32 billion to Dh7.91 billion.

To achieve this, ADCB will issue 592.2 million new shares. Each share will be priced at Dh10.3, made up of Dh1.00 nominal value and a Dh9.3 premium.

The pricing gives shareholders a 30% discount compared to ADCB’s closing price on the Abu Dhabi Securities Exchange on September 4, 2025. This discount makes the offer attractive and encourages wide participation.

The rights issue is not just about raising money. It will also help ADCB expand lending, take on new projects, and remain strong in a changing global financial environment.

Mubadala’s Strong Support

ADCB’s majority shareholder, Mubadala Investment Company, has confirmed that it will fully subscribe to its rights. This means Mubadala is backing ADCB’s growth strategy and giving confidence to other investors.

Mubadala is one of the most trusted investment companies in the region. Its support signals that the Abu Dhabi government believes in ADCB’s strategy and financial stability. This kind of commitment is a strong message for the market and reassures both local and international investors.

Growth Targets for the Next Five Years

ADCB has set an ambitious growth plan. The bank wants to double its net profit to Dh20 billion within five years. It also aims for a return on equity (ROE) above 15% annually.

These goals show the bank’s determination to deliver stronger profits and stay among the top-performing banks in the UAE and the wider Middle East.

Strong Financial Track Record

The decision to raise new capital comes at a time when ADCB is already showing steady growth.

• Total assets grew by 77% over the past five years, reaching more than Dh700 billion by June 2025.
• The bank has achieved 16 straight quarters of profit-before-tax growth, showing consistent performance.
• Shareholder returns over the last year have gone up by more than 75%, rewarding those who invested in the bank.

These achievements highlight ADCB’s ability to perform strongly even in challenging global economic conditions.

Bigger Dividends for Shareholders

ADCB has promised to share more profits with shareholders in the years ahead. The bank plans to distribute Dh25 billion in dividends over the next five years.

This is a 50% increase compared to the previous five-year period. The dividend policy shows the bank’s confidence in its earning capacity and its commitment to reward long-term investors.

Strengthening Capital Position

The rights issue will also make ADCB’s financial position stronger. By adding Dh6.1 billion in fresh capital, the bank expects to improve its Common Equity Tier 1 (CET1) ratio and Capital Adequacy Ratio (CAR) by about 120 basis points.

These ratios are critical for banks, especially those listed as Domestic Systemically Important Banks (D-SIBs) in the UAE. A higher capital ratio gives ADCB the ability to grow while keeping a strong buffer against risks. It also ensures the bank remains fully compliant with UAE regulatory requirements.

Supporting the UAE’s Economic Vision

ADCB’s fundraising plan aligns with the UAE’s Vision 2030 strategy, which focuses on building a diversified, non-oil economy.

Banks like ADCB play an important role in this transformation by financing businesses, infrastructure projects, renewable energy initiatives, and technology-driven industries.

By strengthening its capital, ADCB will be able to provide more loans and support new investments in key sectors such as real estate, logistics, technology, and clean energy.

Timeline and Next Steps

ADCB will hold a General Assembly meeting on October 13, 2025, where shareholders will vote on the rights issue.

Once approval is secured, the plan will also need a green light from the Central Bank of the UAE and the Securities and Commodities Authority (SCA).

After that, ADCB will publish the full timetable for the rights issue, including subscription opening and closing dates. This will give investors a clear view of when they can participate.

A Strong Opportunity for Investors

The rights issue is designed to benefit investors as much as it benefits the bank. Because the shares are priced at a 30% discount to the market price, existing shareholders can increase their holdings at a favorable rate.

With Mubadala’s commitment and ADCB’s proven track record of growth and dividend payouts, many investors are likely to see this as a solid long-term opportunity.

ADCB in a Competitive Banking Market

The UAE banking industry is one of the most competitive in the Middle East. Large players are constantly investing in digital transformation, customer experience, and regional expansion.

ADCB has already built a strong reputation for digital banking services and customer-focused products. The fresh capital from the rights issue will allow the bank to expand these efforts, develop new services, and grow its market share across the region.

Looking Ahead

With a strong foundation, government-backed support, and ambitious growth goals, ADCB is well-positioned for the future. The rights issue will give it the capital needed to strengthen its balance sheet, expand lending, and deliver greater returns to shareholders.

The bank’s focus on growth, dividends, and innovation makes this one of the most important financial moves in the UAE banking sector this year.