UAE bank Mashreq kicks off the UAE banking capital market issuance for 2026 with a $500M Additional Tier 1 (AT1) bond, signalling strong investor confidence in the UAE’s banking sector and Mashreq’s credit profile.
Investor Demand
The deal drew steep demand from investors across a range of diverse markets: the MENA (67% order book), Europe (22% order book), and Asia (8% order book). Mashreq’s strong international portfolio, beyond its regional headquarters in Dubai, lends itself to strong subscription rates across issuances and high credit ratings (A3, Moody’s and A, S&P).
Together the order book raised $2.1B of capital, putting the bank in a strong financial position to accelerate growth in 2026. The transaction is the first official UAE bank capital issuance in 2026, and it marks Mashreq’s return to the bond market after its sukuk issuance in April 2025.
Ahmed Abdelaal, Mashreq’s Group CEO, said the positive response reflected the “depth of investor confidence” in Mashreq’s credit profile, strategy, and long-term growth prospects.”
Norman Tambach, Group CEO, pointed to demand from both existing and new investors.
Mashreq Sukuk Market
Mashreq is accelerating its issuance of sukuk in Islamic markets, with ongoing expansion in Saudi Arabia, Türkiye, and Egypt whilst CIS countries are becoming increasingly interested in Islamic finance according to well-placed sources.
Taxation System
Earlier this year, Mashreq reported a net profit fall of 23% despite overall positive 2025 gains citing the UAE Domestic Top-Up Tax.
The UAE introduced a top-up tax for large firms operating in the UAE with annual consolidated revenues equal to or exceeding 750M in two of the last four fiscal years. The law became effective since 1 January 2025.
It was intended to serve as a supplementary tax to the existing corporation tax regime in the UAE. The UAE has a 0% corporation tax rate for taxable income up to AED 375, 000 and a 9% tax rate for incomes exceeding that threshold.
Stay Up to Date with the Latest Updates at Finance ME!
Kuwait Placed on Financial Crime Grey List Amid AML Concerns
