United Arab Bank achieves Dh1.03 billion fundraising via a rights offering
United Arab Bank Successfully Completes Oversubscribed Rights Issue
United Arab Bank (UAB) has announced the successful completion of its rights issue, raising AED 1.03 billion and bolstering its capital base. The move, which saw the bank issue an additional 1.03 billion shares priced at AED 1 each, brings UAB's issued capital to AED 3.093 billion as of July 29, 2025.
The rights issue, oversubscribed and indicating strong investor confidence, is a significant milestone in strengthening UAB's capital position. Al Tamimi & Co. acted as the Legal Adviser for this strategic move, while First Abu Dhabi Bank (FAB) served as Lead Manager and Bookrunner.
The proceeds from this capital increase will be used to strengthen UAB's financial resilience, support future business growth, and contribute to the UAE economy and sustainable development objectives. This strategic move is expected to support UAB's next phase of strategy, delivering sustainable returns to its shareholders.
The bank's financial performance for the first half of 2025 reflects the success of this strategy. UAB reported a 50% year-on-year increase in net profit, reaching AED 208 million. This strong performance was driven by a 24% growth in total income to AED 374 million and an 11% increase in total assets compared to December 2024. The bank's retained earnings also turned positive, eliminating past accumulated losses.
This capital injection and improved financial results underscore UAB's robust fundamentals and strategic execution under current management. The Rights Issue ensures UAB is well-positioned to meet evolving regulatory requirements, further solidifying its position in the UAE banking sector.
Sources: [1] Gulf News, "United Arab Bank raises AED 1.03 billion through rights issue," July 29, 2025. [2] Zawya, "UAB raises AED 1.03 billion through rights issue," July 29, 2025. [3] Khaleej Times, "UAB reports 50% year-on-year increase in net profit for H1 2025," August 5, 2025. [4] UAB Press Release, "UAB Completes Oversubscribed Rights Issue," July 29, 2025. [5] Arabian Business, "UAB's financial performance soars following rights issue," August 10, 2025.
- The oversubscribed rights issue by United Arab Bank (UAB) indicates a surge of confidence in the banking-and-insurance industry's financial stability.
- The completion of the rights issue by UAB will boost its capability to support business growth in various sectors, including finance and industry.
- The sports and entertainment industry may participate in UAB's investments once the bank's capital position has been significantly strengthened.
- The successful rights issue by UAB could potentially attract more attention from news outlets covering business and finance sectors.
