Subscribe

Don't miss any update with Africazine.

― Advertisement ―

spot_img
HomeNewsEmirates International Investment Company acquires additional 7.6% interest in Abu Dhabi Islamic...

Emirates International Investment Company acquires additional 7.6% interest in Abu Dhabi Islamic Bank

Emirates International Investment Company LLC (EIIC), the strategic investment arm of National Holding, has acquired a 7.6 percent stake in Abu Dhabi Islamic Bank (ADIB) from Mubadala Investment Company (Mubadala). The transaction has increased EIIC’s total shareholding in ADIB to 47 percent, reflecting the company’s strong confidence in the prospects for the long-term growth of the UAE’s second-largest Islamic lender by assets.

EIIC has a diverse range of interests, spanning multiple sectors, including banking, asset management, real estate, hospitality, fintech, as well as food and agriculture. As a global investor, the acquisition of the stake in ADIB is in line with Mubadala’s strategy to create long-term value by optimising a global portfolio of investments across various sectors. Mubadala remains committed to the UAE banking sector as one of the largest investors in the industry.

In Q1 2023, ADIB reported a growth in net profit of 54 percent to reach AED1.1 billion. The bank also reported record revenues of AED2 billion for the same period, up by 45 percent year-on-year. This was driven by an 81 percent growth in funded income to AED1.4 billion, 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.

The acquisition of a significant stake in ADIB by EIIC is a clear indication of the company’s confidence in the growth prospects of the UAE’s banking sector. The acquisition will likely benefit both companies, enabling ADIB to further expand its operations and increase profitability, while providing EIIC with a stable and profitable investment. The acquisition also underlines the UAE’s reputation as a preferred investment destination in the region, with a dynamic and rapidly growing banking sector.

PR WIRE