Asan Tata— November 15, 2026First Abu Dhabi Bank has announced one of the largest capital raises in UAE banking history. The FAB rights issue will raise up to Dh15 billion through more than 1.1 billion new shares at Dh13.52 each. The board approved the plan on 11 November 2026, and shareholders will vote on it at a general assembly on 7 December 2026.
A rights issue lets existing shareholders buy new shares first, usually at a discount. FAB is offering its new shares at a 30 per cent discount to the closing price on 10 November 2026, and the money will fund growth in the UAE and across its international network, including investment in technology and artificial intelligence.
This article explains the FAB rights issue in plain terms: the price, the dates, what shareholders need to do, and what it means for the UAE economy. All key facts come from FAB’s announcement of 11 November 2026 and market reports that followed it.
Quick Answer
FAB plans to raise up to Dh15 billion (US$4.08 billion) by issuing 1,109,467,456 new shares at Dh13.52 each, 30 per cent below its closing share price on the Abu Dhabi Securities Exchange (ADX) on 10 November 2026. Existing shareholders can subscribe in proportion to what they already own, so they can keep their ownership percentage unchanged if they take up their rights.
The deal still needs shareholder and regulatory approval. FAB will seek approval at a general assembly on 7 December 2026, and the final entitlement ratio, eligibility date, rights-trading period and subscription timetable will be announced after that. The bank expects completion in the first quarter of 2027.
Mubadala Investment Company, FAB’s largest shareholder with a 37.9 per cent stake, intends to subscribe for its full entitlement. FAB shares rose more than 9 per cent on 12 November 2026, and the ADX General Index rose 1.467 per cent the same day.
What Is the FAB Rights Issue?
A rights issue lets a listed company raise new capital from its existing shareholders. New shares are offered to current shareholders first, in proportion to what they already hold, at a fixed price below the market price.
FAB’s board approved the proposal on 11 November 2026. The bank calls it a strategic rights issue. It is not a sale of the bank, and it is not a rescue: the extra capital will give FAB more capacity to lend and to grow in the UAE and in the more than 20 markets where it operates. The issue is still a proposal, and shareholders and regulators must approve it. Until then, no shareholder has to act, and no money changes hands.
The Price: Dh13.52 per Share
The new shares will be offered at Dh13.52 each, 30 per cent below FAB’s closing share price on the ADX on 10 November 2026. A 30 per cent discount is large by market standards, and it is designed to make the new shares attractive to existing shareholders.
The discount reflects the price on one specific day, and the market price can move before and during the subscription period. What matters for shareholders is the value of their rights and whether they use them, sell them, or let them lapse.
When a company issues many new shares at a discount, the market price often moves toward a level between the old price and the new issue price, which can create some short-term volatility.
How Many New Shares and How Much Money
FAB plans to issue 1,109,467,456 new shares. At Dh13.52 each, that would raise about Dh15 billion in gross proceeds. The figure is “up to” Dh15 billion, because the final amount depends on how many shareholders take up their rights.
| Item | Detail |
|---|---|
| Total amount to be raised | Up to Dh15 billion (about US$4.08 billion) |
| New shares to be issued | 1,109,467,456 |
| Subscription price | Dh13.52 per share |
| Discount to 10 November 2026 close | 30 per cent |
| Approval needed | Shareholders and regulators |
| General assembly date | 7 December 2026 |
| Expected completion | First quarter of 2027 |
| Largest shareholder | Mubadala Investment Company (37.9 per cent) |
Shareholders who take up their full entitlement will keep their proportional ownership. Those who do not will own a smaller share of a larger company.
Key Dates and Timetable
FAB has announced only part of the timetable so far. The confirmed dates are the board approval, the general assembly, and the expected completion window. The detailed dates will follow once approvals are in place.
| Date | Event |
|---|---|
| 10 November 2026 | Closing share price used to set the 30 per cent discount |
| 11 November 2026 | Board approves the proposed rights issue |
| 12 November 2026 | FAB shares rise more than 9 per cent on the ADX |
| 7 December 2026 | General assembly to seek shareholder approval |
| To be announced | Entitlement ratio, eligibility date, ex-rights date, rights trading and subscription period |
| First quarter of 2027 | Expected completion of the transaction |
The entitlement ratio is the number of new shares each shareholder can buy for each share they already own. FAB has not announced it yet. The eligibility date will decide who qualifies: only those on the register on that date will receive rights. In a typical rights issue, rights can also be bought and sold on the exchange for a short window.
What Shareholders Need to Do
For now, shareholders do not need to do anything. The general assembly on 7 December 2026 comes first. After that, and after regulatory approval, FAB will publish the final terms and timetable. The steps below describe the usual process for a rights issue on the ADX.
Step 1: Check If You Are Eligible
Eligibility depends on holding FAB shares on the eligibility date, which has not been announced yet. Shareholders should check their holdings through their broker or the ADX investor portal once it is published.
Step 2: Read the Final Terms
The final terms will state the entitlement ratio, the subscription price, the subscription period, and how to pay. FAB says further information will be available through its Investor Relations website.
Step 3: Decide Whether to Subscribe
Shareholders can subscribe for their full entitlement, subscribe for part of it, sell their rights during the trading period, or do nothing. Doing nothing usually means the rights expire and their ownership percentage falls.
Step 4: Pay Within the Subscription Period
Subscription requires payment within the stated window. FAB is acting as lead manager, bookrunner and sole receiving bank, so payments will be handled through FAB. J.P. Morgan is financial advisor, and Allen Overy Shearman Sterling is legal advisor. Shareholders who are unsure should speak to their broker or a licensed financial advisor.
Mubadala’s Backing: Full Subscription Planned
Mubadala Investment Company, FAB’s largest shareholder with a 37.9 per cent stake, intends to subscribe for its full pro-rata entitlement. That is effectively a commitment to put up more than a third of the Dh15 billion, if the deal goes ahead on the announced terms.
A large shareholder taking up its full entitlement reduces the risk that the issue falls short, and it shows confidence in FAB’s strategy.
FAB Chairman Sheikh Tahnoon bin Zayed Al Nahyan said the issue will strengthen FAB’s ability to support the UAE’s ambitions. Group Chief Executive Hana Al Rostamani called it a strategic step for the bank’s next phase of growth.
Why FAB Is Raising the Money
FAB says the capital will support its next phase of growth in the UAE and across its global franchise, operating in more than 20 markets and across 25 UAE-linked trade corridors.
The bank points to growing global trade, larger cross-border capital flows, and investment in infrastructure, artificial intelligence and digital capacity, plus expected UAE real GDP growth of around 5 per cent over 2026 to 2031.
FAB’s Medium-Term Targets for 2026 to 2031
Alongside the rights issue, FAB set out an ambitious medium-term framework. These are targets, not promises, and actual results may differ.
| Target | Figure |
|---|---|
| Loan growth | 10 to 15 per cent per year |
| Revenue growth | 10 to 15 per cent per year |
| Return on tangible equity (RoTE) | Above 17 per cent through the cycle |
| Cumulative dividends | More than Dh50 billion |
| Cost of risk | Below 70 basis points |
| Common Equity Tier 1 (pre-dividend) | Above 14 per cent |
| Credit strength | AA- maintained |
FAB’s Track Record Since 2020
FAB enters this capital raise from a position of strength. Since 2020, its total assets have increased by more than 50 per cent to Dh1.4 trillion, net income has doubled to Dh21.1 billion, and return on tangible equity has risen by 6.2 percentage points to 19.2 per cent.
Over 2020 to 2025, FAB returned Dh44 billion in cash dividends, nearly 20 per cent of all cash dividends paid on the Abu Dhabi Securities Exchange in that period, while keeping its AA- credit strength.
Recent results support the picture: net profit of about Dh16.4 billion for the first nine months of 2026, up about 3 per cent. The bank is raising capital to grow, not to cover losses.
Market Reaction: FAB Shares Jump
The market response was positive. FAB shares rose more than 9 per cent on 12 November 2026, and the ADX General Index rose 1.467 per cent to 9,725.72. FAB led a rally in banking stocks, with Abu Dhabi Islamic Bank up 3.27 per cent and Abu Dhabi Commercial Bank up 2.89 per cent.
Trading was heavy: FAB shares worth Dh31.72 million changed hands in two bulk transactions on 12 November, according to an ADX update reported by Aletihad.
What It Means for UAE Residents Who Are Not Shareholders
Most UAE residents do not own FAB shares, but the rights issue still matters to them. FAB is the UAE’s largest bank by assets, so more capital to lend can mean more financing for businesses, mortgages, trade and infrastructure projects, which supports jobs and economic activity. For FAB customers, nothing changes in the short term: accounts, cards, loans and branches are unaffected.
Risks and Things to Watch
The most direct risk is dilution. Shareholders who do not subscribe will own a smaller percentage of the bank after the new shares are issued. The value of their holding depends on how the market values the larger, better-capitalised bank.
The deal is not yet approved: shareholders could vote against it on 7 December 2026, and regulators could ask for changes. FAB expects completion in the first quarter of 2027, but that is an expectation, not a guarantee. The growth targets are also uncertain, since loan and revenue growth of 10 to 15 per cent a year depend on economic conditions and demand for credit. Investors should treat the targets as ambitions, not promised results.
Frequently Asked Questions
What is the FAB rights issue?
First Abu Dhabi Bank plans to raise up to Dh15 billion by issuing 1,109,467,456 new shares at Dh13.52 each. The board approved it on 11 November 2026, and shareholder and regulatory approval is still needed.
How much will the new FAB shares cost?
Dh13.52 per share, which is 30 per cent below FAB’s closing share price on the ADX on 10 November 2026.
When will FAB shareholders vote on the rights issue?
FAB will seek approval at a general assembly on 7 December 2026, and completion is expected in the first quarter of 2027.
Do I need to do anything now if I own FAB shares?
No. Shareholders do not need to act until FAB publishes the final terms, including the entitlement ratio, the eligibility date and the subscription period.
What happens if I do not subscribe?
Your percentage ownership of FAB will fall once the new shares are issued. You may be able to sell your rights during the rights-trading period, if one is offered.
Is Mubadala supporting the rights issue?
Yes. Mubadala Investment Company, FAB’s largest shareholder with a 37.9 per cent stake, intends to subscribe for its full pro-rata entitlement.
Disclaimer: This article is for general information only, not investment advice. Share prices can rise and fall. Before making any investment decision, read FAB’s official announcements and consider speaking to a licensed financial advisor.
Last Updated: 15 November 2026
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