Emirates International Investment Company acquires minority stake in ADIB

By Arya M Nair, Official Reporter
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EIIC acquires stake in ADIB

Emirates International Investment Company LLC (EIIC), the strategic investment arm of Abu Dhabi-based National Holding, has acquired a 7.6 percent stake in Abu Dhabi Islamic Bank (ADIB) from Mubadala Investment Company (Mubadala).

This transaction brings EIIC’s total shareholding in ADIB to 47 percent, signaling strong confidence in the prospects for the long-term growth of the UAE’s second-largest Islamic lender by assets.

EIIC has interests across diverse sectors including banking, asset management, real estate, hospitality, fintech as well as food and agriculture.

As a global investor, this transaction is in line with Mubadala’s strategy to create long-term value by optimizing a global portfolio of investments across a variety of sectors. Mubadala remains committed to the UAE banking sector as one of the largest investors in the sector.

For the first quarter of 2023, Abu Dhabi Islamic Bank (ADIB) reported a growth in net profit of 54 percent to reach $24.4 billion, driven by significant growth as well as higher margins. The bank reported record revenues of $545 million for the same period, up by 45 percent year-on-year. This was underpinned by an 81 percent growth in funded income to $381 million, derived from growth in customer financing and higher margins. ADIB also delivered a record return on equity of 23.4 percent. The Shariah-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.

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