Bank United Arab successfully secures AED 1.03 billion through rights offering
United Arab Bank Strengthens Capital Position with Successful Rights Issue
United Arab Bank (UAB) has announced the successful completion of its rights issue in 2025, raising AED 1.031 billion and increasing its issued capital from AED 2.062 billion to AED 3.093 billion. The rights issue, priced at AED 1 per share, was oversubscribed, indicating robust investor confidence and the bank’s strong fundamentals.
This capital increase is a significant milestone in strengthening UAB's capital position and enhancing its financial resilience. The funds raised will be used to support the next phase of UAB's strategy, positioning the bank for sustainable growth and continued contribution to the UAE financial sector and economy.
"We are grateful for the trust and support of our shareholders in this rights issue," said H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank. "This success marks a new chapter in UAB's progress and reaffirms our commitment to delivering value to shareholders."
Shirish Bhide, CEO of UAB, added, "The success of the rights issue reflects shareholder confidence in the bank and its future endeavors. We are well-positioned to meet evolving regulatory requirements, support clients' needs, and deliver sustainable returns to shareholders."
The rights issue was supported by various entities, including the Central Bank of the UAE (CBUAE), the Securities and Commodities Authority (SCA), the Abu Dhabi Securities Exchange (ADX), and all transaction partners. First Abu Dhabi Bank (FAB) acted as Lead Manager and Bookrunner of the rights issue, while Al Tamimi & Co. provided legal advice.
UAB's total income for the year rose by 24% year-on-year to AED 374 million, and the bank posted a net profit of AED 208 million for the first half of 2025, representing a 50% year-on-year increase. The strong response to the rights issue will further strengthen UAB's balance sheet, enabling the bank to continue delivering value to its shareholders and contributing to the UAE economy and sustainable development goals.
The success of the rights issue underscores UAB's investment-grade ratings by Moody’s (Baa3/P-3/Positive) and Fitch (BBB+/F2/Stable), factors that contributed to the bank's ability to successfully raise funds. Institutional investors such as Commercial Bank also participated significantly in the rights issue, further underscoring market confidence.
With the successful completion of the rights issue, UAB is well-positioned to meet evolving regulatory requirements, support clients' needs, and deliver sustainable returns to shareholders. The bank's leadership remains committed to delivering value to shareholders and contributing to the UAE economy and sustainable development goals.
[1] United Arab Bank Press Release, 2025 [2] Moody’s Investors Service Press Release, 2025 [3] Fitch Ratings Press Release, 2025 [4] Commercial Bank Press Release, 2025 [5] United Arab Bank Annual Report, 2025
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