ADIB gets shareholder nod to raise Dh1.75b for Vision 2035

Dubai: Abu Dhabi Islamic Bank (ADIB) shareholders have approved a rights issue to raise about Dh1.75 billion  or $476 million. The issue was voted on at the General Assembly on Tuesday, October 6. The bank said that it will use the funds to support growth under its Vision 2035 strategy. 

The proposed rights issue comprises 106,383,000 new shares at an issue price of AED 16.45 per share. The price is a 28.8 per cent discount to the August 24 closing price. Upon completion, the Bank’s issued and paid-up share capital will increase from Dh3.632 billion to Dh3.738 billion.

Each new share carries a nominal value of Dh1 and a premium of Dh15.45. Major shareholders have already committed to take up their entitlements, the bank disclosed when its board approved the plan on August 25. The  bank will now set out the record date, rights trading period and subscription period. The timetable remains subject to regulatory and supervisory approvals.

Acting on Vision 2035

Chairman Jawaan Awaidah Al Khaili said that the vote reflects shareholder confidence in the bank's strategy. “This capital raise will further strengthen the Bank’s financial foundation and support the opportunities ahead under Vision 2035. We remain focused on creating lasting value for our shareholders.” 

Mohamed Abdelbary, Group Chief Executive Officer of ADIB, said that the bank’s model was one that generates high returns. “The additional equity will provide greater capacity to fund this growth while maintaining capital strength. Our focus is on deploying that capital with discipline to deliver sustainable returns for shareholders,” he added.

The bank’s assets stood at Dh304 billion ($82.8 billion) at the end of the first half of 2026, after 24 per cent growth in 2025. Return on equity was 28 per cent in 2024, 29 per cent in 2025 and 28 per cent in the first half of this year. 

Recent rights issues by banks

UAE banks have turned to rights issues repeatedly over the past year.

Abu Dhabi Commercial Bank (ADCB) set the benchmark. Its board approved a Dh6.1 billion ($1.66 billion) issue on September 8, 2025. The bank priced 592.2 million new shares at Dh10.30 ($2.80), a 30 per cent discount. Subscriptions closed on December 4, 2025, with funded commitments above Dh12 billion ($3.27 billion). ADCB describes it as the largest rights issue by a company with a primary listing on the Abu Dhabi Securities Exchange (ADX).

Sharjah Islamic Bank followed this year. Its Dh2.59 billion ($705 million) issue closed on May 8. Demand topped Dh8.3 billion ($2.26 billion), covering the offer more than 3.2 times. Foreign investors accounted for about 55 per cent of orders. The bank ranks the deal as the second largest on ADX in 20 years.

Emirates NBD also ran a rights issue in 2019. ADX first applied rights trading in 2014, when Eshraq Properties raised Dh600 million ($163 million).