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Emirates International Investment Company (EIIC) said it has acquired a 7.6 percent stake in Abu Dhabi Islamic Bank (ADIB) from Mubadala Investment Company (Mubadala).
The transaction increases EIIC’s total stake in ADIB to 47%, reflecting the company’s confidence in the long-term growth prospects of the UAE’s second largest bank by Islamic assets.
EIIC is the strategic investment arm of Abu Dhabi-based National Holding, with investments in a wide range of sectors including banking, asset management, real estate, hospitality, fintech, and food and agriculture.
As a global investor, the acquisition of ADIB’s stake is in line with Mubadala’s strategy to create long-term value by optimizing its global portfolio in all sectors.
As one of the largest investors in the sector, Mubadala remains committed to the UAE banking sector.
In the first quarter of 2023, ADIB reported a 54% increase in net profit to AED 1.1 billion. The bank also reported record revenue of AED 2 billion ($544 million) for the period, up 45 percent year-on-year.
This was driven by an 81% increase in financing revenue to AED 1.4 billion, driven by growth in client financing and higher margins. ADIB also achieved a record return on equity of 23.4%.
The Sharia-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.
EIIC’s acquisition of a substantial stake in ADIB is a clear indication of the company’s confidence in the growth prospects of the UAE’s banking sector.
It could benefit both companies, allowing ADIB to further expand its business and improve profitability, while providing EIIC with a stable and profitable investment. –trade arab news agency
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