United Arab Bank successfully raises Dh1.03 billion through rights issue

14/02/1447 02:46 AST

United Arab Bank (UAB), listed on the Abu Dhabi Securities Exchange (ADX) announced the successful completion of its capital increase, which ended on July 29, 2025. The Rights Issue raised Dh1,031 billion increasing the Bank's issued capital from Dh2,062 billion to Dh3,093 billion. The newly issued shares were priced at Dh1 per share.

The Rights Issue was oversubscribed, underscoring UAB's robust fundamentals and strong performance as a result of the diligent execution of its turnaround strategy. United Arab Bank intends to use the net proceeds raised from the Rights Issue to strengthen its capital base and to support future growth of the business of the Bank.

Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, said: "We are deeply grateful for the trust and support of our shareholders in this Rights Issue. The strong response we have received will further strengthen our balance sheet, mark a new chapter in UAB's progress, and reaffirm our commitment to delivering value to our shareholders. In addition, it will enhance our financial resilience, and position us to continue contributing to the UAE economy and its sustainable development agenda."

He added: "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."

Shirish Bhide, CEO of United Arab Bank, said: "The success of the Rights Issue reflects the confidence that our shareholders have in the Bank and our future endeavours. This step represents an important milestone in strengthening UAB's capital position and reinforces our long-term commitment to sustainable growth. The additional capital will support the next phase of our strategy, ensuring we are well-positioned to meet evolving regulatory requirements, support our clients' needs, and deliver sustainable returns to our shareholders."

UAB posted a net profit of Dh208 million for the first half of 2025, compared to Dh139 million for the same period last year, representing a 50 per cent year-on-year increase. Total income rose by 24 per cent year-on-year to Dh374 million.

First Abu Dhabi Bank (FAB) acted as Lead Manager and Bookrunner of the Rights Issue and Al Tamimi & Co. acted as Legal Adviser.

Khaleej Times