UAB has announced plans to increase its issued share capital by up to Dh1.03 billion through a rights issue aimed at strengthening its capital base and supporting future expansion.
The offering will raise UAB’s issued capital from Dh2.06 billion to Dh3.09 billion. The new shares will be issued for Dh1 per share and will be offered to existing shareholders. The move was approved by the bank’s Board of Directors on February 4, 2025, and ratified at its General Assembly on March 6. UAB confirmed that all regulatory approvals for the transaction have been obtained.
According to the bank’s statement, shareholders and eligible rights holders will be entitled to subscribe to the new shares between July 4 and July 17, 2025. The rights will be tradeable during this period, allowing other investors to participate in the issuance. Allocations will be finalised on July 24, and any excess funds will be refunded on or around the same date.
The bank stated that the capital raise is intended to enhance its Tier 1 capital ratio and facilitate future credit expansion in line with regulatory requirements. UAB, which has been undergoing restructuring in recent years to improve asset quality and streamline operations, has signalled that it is positioning for growth in both retail and corporate banking segments.
The rights issue comes at a time when UAE banks are enhancing their capital buffers amid changes to the Basel III guidelines and increasing loan demand across various sectors. The UAE Central Bank’s latest data shows consistent loan growth, particularly in trade, construction, and small business lending. Strengthening capital positions is considered essential for maintaining competitiveness and meeting long-term funding requirements.
