DUBAI: First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, posted a 1 percent fall in fourth-quarter net profit, citing costs linked to its recent merger.
FAB, the combination of National Bank of Abu Dhabi and First Gulf Bank, said net profit for the quarter was Dh2.82 billion, compared with Dh2.85 billion in the year earlier.
SICO Bahrain had estimated the bank would make a net profit of Dh2.65 billion, while EFG Hermes forecast Dh2.83 billion.
Excluding integration costs and other merger-related expenses, adjusted net profit for the quarter was Dh3.16 billion, up from Dh2.97 billion a year ago.
FAB’s board of directors recommended a cash dividend of Dh0.70 per share, which it said was the highest combined dividend distributed by the two banks, up 11 percent from 2016.
It said it had achieved around Dh500 million of cost synergies in the first year of integration, adding that it was evaluating its local activities and branch network.
“Regionally, we are working on expanding our presence to Saudi Arabia which forms part of FAB’s long-term strategy,” group chief executive Abdulhamid Saeed said.
Regional and international banks are eyeing opportunities to expand in Saudi Arabia, the largest economy in the Gulf, as the government pushes through reforms to cut the country’s dependence on oil revenue.
First Abu Dhabi Bank’s Q4 profit crimped by merger costs
First Abu Dhabi Bank’s Q4 profit crimped by merger costs
Kuwait to boost Islamic finance with sukuk regulation
- The move supports sustainable financing and is part of Kuwait’s efforts to diversify its oil-dependent economy
RIYADH: Kuwait is planning to introduce legislation to regulate the issuance of sukuk, or Islamic bonds, both domestically and internationally, as part of efforts to support more sustainable financing for the oil-rich Gulf nation, Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah said on Wednesday.
Speaking at the World Governments Summit in Dubai, Al-Sabah highlighted that Kuwait is exploring a variety of debt instruments to diversify its economy. The country has been implementing fiscal reforms aimed at stimulating growth and controlling its budget deficit amid persistently low oil prices. Hydrocarbons continue to dominate Kuwait’s revenue stream, accounting for nearly 90 percent of government income in 2024.
The Gulf Cooperation Council’s debt capital market is projected to exceed $1.25 trillion by 2026, driven by project funding and government initiatives, representing a 13.6 percent expansion, according to Fitch Ratings.
The region is expected to remain one of the largest sources of US dollar-denominated debt and sukuk issuance among emerging markets. Fitch also noted that cross-sector economic diversification, refinancing needs, and deficit funding are key factors behind this growth.
“We are about to approve the first legislation regulating issuance of government sukuk locally and internationally, in accordance with Islamic laws,” Al-Sabah said.
“This enables us to deal with financial challenges flexibly and responsibly, and to plan for medium and long-term finances.”
Kuwait returned to global debt markets last year with strong results, raising $11.25 billion through a three-part bond sale — the country’s first US dollar issuance since 2017 — drawing substantial investor demand. In March, a new public debt law raised the borrowing ceiling to 30 billion dinars ($98 billion) from 10 billion dinars, enabling longer-term borrowing.
The Gulf’s debt capital markets, which totaled $1.1 trillion at the end of the third quarter of 2025, have evolved from primarily sovereign funding tools into increasingly sophisticated instruments serving governments, banks, and corporates alike. As diversification efforts accelerate and refinancing cycles intensify, regional issuers have become regular participants in global debt markets, reinforcing the GCC’s role in emerging-market capital flows.
In 2025, GCC countries accounted for 35 percent of all emerging-market US dollar debt issuance, excluding China, with growth in US dollar sukuk issuance notably outpacing conventional bonds. The region’s total outstanding debt capital markets grew more than 14 percent year on year, reaching $1.1 trillion.
