FAB rights issue seeks up to AED 15bn at AED 13.52 a share. The UAE’s largest bank wants more room to lend.

The FAB rights issue would raise up to AED 15bn by selling about 1.11bn new shares to existing investors at AED 13.52 each, 30% below the stock’s close on the ADX on 10 November. For businesses in the UAE, the money matters more than the discount: First Abu Dhabi Bank, the country’s largest lender, says it will use the fresh capital to expand lending and grow loans and revenue by 10–15% a year to 2031. Shareholders vote on the plan on 7 December.

The short version

• FAB’s board has approved a proposed rights issue of up to AED 15bn at AED 13.52 a share, a 30% discount to the 10 November close.
• About 1,109,467,456 new shares would be offered. Mubadala, which owns 37.9%, intends to take up its full entitlement.
• The bank targets annual loan and revenue growth of 10–15% and cumulative dividends above AED 50bn over 2026–2031.
• A general assembly on 7 December must approve it; completion is expected in the first quarter of 2027.

What happened

First Abu Dhabi Bank announced on 11 November that its board had approved a proposed rights issue raising gross proceeds of up to AED 15bn, Khaleej Times reported. The subscription price is AED 13.52 a share, 30% below the closing price on the Abu Dhabi Securities Exchange on 10 November, and the bank plans to issue 1,109,467,456 new shares, according to Arabian Business.

The deal needs shareholder approval at a general assembly on 7 December and regulatory approvals. The entitlement ratio, eligibility date, rights-trading period and subscription timetable will be announced later. Mubadala, FAB’s largest shareholder with 37.9%, has said it intends to subscribe for its full pro-rata entitlement. J.P. Morgan is financial adviser. Finimize reported that FAB shares rose 7.9% after the announcement while other Gulf stocks slipped.

FAB plans to pay out far more than it is raising

FAB rights issue size compared with cash dividends, AED bn

Dividend target, 2026–2031 (cumulative, minimum)

AED 50bn+

Cash dividends paid, 2020–2025

AED 44bn

Proposed rights issue (gross, up to)

AED 15bn

Subscription price per new share

AED 13.52 (vs about AED 19.31 implied 10 Nov close)

Why it matters

Bank capital sets how much a bank can lend. FAB’s medium-term plan for 2026–2031 combines 10–15% annual loan growth with a group CET1 ratio above 14% before dividends, a cost of risk below 70 basis points, a return on tangible equity above 17% and an AA- credit rating. Growing the loan book that fast while keeping those buffers and paying more than AED 50bn in dividends needs new equity, and the rights issue provides it. FAB says total assets have risen by more than half since 2020 to AED 1.4tn, and its AED 44bn of cash dividends in 2020–2025 was close to a fifth of all cash dividends on the ADX.

The FAB rights issue also comes soon after the ADX slid to an 18-month low earlier this month, so its take-up will be read as a test of investor appetite for UAE shares.

The knock-on effects

First order: shareholders must choose

Existing shareholders can subscribe at AED 13.52, sell their rights once trading opens, or accept a smaller share of the bank. Anyone who does nothing is diluted, since about 1.11bn new shares are being added. Mubadala’s commitment covers 37.9% of the issue.

Second order: more room to lend

If the plan works, the largest bank in the UAE will have more balance sheet for corporate loans, trade finance, project finance and mortgages. That matters for contractors, developers and mid-sized firms that rely on bank credit, and it gives rival lenders a stronger competitor on pricing.

Third order: money moves around the market

Up to AED 15bn of investor cash is needed in the first quarter of 2027. Funds that subscribe may sell other UAE holdings to pay for it, which can weigh on trading elsewhere on the ADX and DFM during the subscription window. Investors can compare this with other recent capital moves such as the Emaar Development buyout offer.

Who could benefit

• Borrowers: companies seeking large loans, trade finance or project funding from a better-capitalised lender.
• Subscribing shareholders: those who take up rights at AED 13.52 keep their stake and share in any future dividends.
• Advisers and brokers: banks, law firms and brokers handling the issue and rights trading.

Who may face pressure

• Shareholders who do not act: their stake is diluted.
• Rival banks: a larger FAB balance sheet could mean sharper competition on corporate loan pricing.
• Other listed companies: investor cash set aside for the issue may not go elsewhere during the subscription period.

What to watch

• 7 December 2026: FAB general assembly vote on the rights issue.
• After the vote: the entitlement ratio, eligibility date and rights-trading dates.
• First quarter of 2027: subscription and expected completion.
• Later results: whether loan growth reaches the 10–15% target.

Sources

• Khaleej Times, First Abu Dhabi Bank seeks Dh15 billion in rights issue to fund growth across UAE and beyond, 11 November 2026
• Arabian Business, UAE’s largest bank FAB plans $4.1bn share sale at 30% discount, 12 November 2026
• TradeArabia, First Abu Dhabi Bank approves $4bn strategic rights issue, 12 November 2026
• Finimize, Gulf stocks slipped, but FAB jumped on a rights issue, 12 November 2026

This is analysis, not investment advice. Figures are as of 14 November 2026.