United Arab Bank Successfully Raises AED 1.03 Billion Through Rights Issue To Strengthen Capital Base

United Arab Bank (UAB), listed on the Abu Dhabi Securities Exchange (ADX), has successfully completed its capital increase. This process concluded on July 29, 2025. The Rights Issue raised AED1,031 billion, boosting the bank's issued capital from AED2,062 billion to AED3,093 billion. Each newly issued share was priced at AED 1. All necessary regulatory approvals for this transaction have been secured.

The Rights Issue was oversubscribed, highlighting UAB's strong fundamentals and performance due to its effective turnaround strategy. The bank plans to use the net proceeds to bolster its capital base and support future business growth.

H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of UAB's Board of Directors, expressed gratitude for shareholder trust and support in the Rights Issue. He stated that the strong response would enhance UAB’s balance sheet and mark a new chapter in its progress. "We are deeply grateful for the trust and support of our shareholders in this Rights Issue," he said.

He further acknowledged the role of regulatory bodies and partners in ensuring the success of this initiative. "We also extend our sincere appreciation to the Central Bank of the UAE (CBUAE), the Securities and Commodities Authority (SCA), the Abu Dhabi Securities Exchange (ADX) and all our transaction partners whose support and collaboration were instrumental in ensuring the success of this Rights Issue," he added.

Shirish Bhide, CEO of United Arab Bank, commented on the announcement by stating that shareholder confidence is reflected in the success of the Rights Issue. "The success of the Rights Issue reflects the confidence that our shareholders have in the Bank and our future endeavours," he noted. This step is crucial for strengthening UAB’s capital position and supports long-term sustainable growth.

The additional capital will aid in meeting evolving regulatory requirements while supporting client needs and delivering sustainable returns to shareholders. In terms of financial performance, UAB reported a net profit of AED208 million for H1 2025, up from AED139 million during the same period last year—a 50% increase year-on-year.

Future Prospects

Total income rose by 24% year-on-year to AED374 million, showcasing robust growth. The bank remains committed to contributing to UAE's economy and sustainable development agenda through enhanced financial resilience.

This strategic move positions UAB well for future challenges while reaffirming its commitment to delivering value to shareholders. The successful completion of this capital increase marks a significant milestone in UAB's journey towards achieving its strategic objectives.

With inputs from WAM