UAB’s Rights Issue Explained
In March 2025, United Arab Bank (UAB) got approval to raise more money through a rights issue. This is being done to strengthen the bank’s finances and support its future growth.
UAB will offer new shares for $0.27 (AED 1) each. Shareholders who are eligible can buy these shares between July 4 and July 17, as long as they meet the conditions and get approval from regulators.
A rights issue lets current shareholders buy more shares at a lower price, depending on how many shares they already own.
New shares will be given to eligible investors on July 24, and any extra money (if someone doesn’t get all the shares they asked for) will also be returned on the same day.
UAB said this move will help the bank stay strong, create long-term value, and support the UAE’s economy.
First Abu Dhabi Bank is managing the offering, and Al Tamimi & Co. is acting as the legal adviser.
Other Rights Issues in the UAE
In 2019, Emirates NBD launched a big rights issue to raise $1.8 billion (AED 6.45 billion). It was very successful, attracting strong interest from local and global investors. It was oversubscribed 2.8 times, with total interest reaching $4.9 billion (AED 18 billion).
In 2018, Ajman Bank also ran a rights issue to raise funds for its Shariah-compliant banking, after getting approval from its board and UAE financial authorities.
UAB’s Recent Performance
UAB’s net profit rose by 49% in the first quarter to AED 102 million, thanks to better operations and fewer bad loans. The bank’s total assets grew 31% to AED 23.4 billion, with more loans, Islamic finance, and a 40% jump in customer deposits.
Fitch Ratings kept UAB’s long-term credit rating at BBB+ (stable outlook) and raised its viability rating from ‘b+’ to ‘bb-‘. This upgrade reflects better asset quality, higher profits, and a healthier loan portfolio, helped by stronger loan approval standards and a solid UAE economy.
Published: 6th June 2025
For more article like this please follow our social media Facebook, Linkedin & Instagram
Also Read:
Abu Dhabi Fund for Development Reaches $59B Funding by 2024
UAE’s Altérra Invests $57M in Italy Solar & Battery Projects
Saudi Non-Oil Business Activity Rises Strongly in May
