UAE’s ADCB secures banking licence in Saudi Arabia

UAE’s Abu Dhabi Commercial Bank (ADCB) said it will set up a branch in Riyadh, subject to final regulatory approvals, after receiving an in-principle approval from Saudi Arabia’s Council of Ministers.

ADCB, said in a statement, that it will provide a comprehensive range of services for corporate and institutional clients, including financing and working capital solutions, under the Foreign Banking Branch licence issued by the Saudi Central Bank (SAMA).

“The bank’s decision to establish a presence in the kingdom aligns with the accelerated expansion of our business. As a major financial institution in the region, ADCB is well positioned to support clients operating in the vibrant Saudi economy,” said Ala’a Eraiqat, group CEO of ADCB.

“Harnessing the strength of our relationships across the region, we are dedicated to being a positive force for corporate growth and a trusted facilitator for trade and investment flows.”

The Abu Dhabi-listed lender said it is leveraging its strong balance sheet and corporate banking capabilities to support its growing client base while contributing to the region’s economic growth.

ADCB’s growth strategy

With a market capitalisation of Dhs64.6bn as of January 17, 2024, ADCB’s nine-month net profit soared by 24 per cent to Dhs5.8bn, driven by accelerated expansion in net interest income, which was up 8 per cent sequentially and 24 per cent year-on-year (YoY).

The bank’s operating income jumped by 21 per cent YoY to Dhs4.23bn while its total assets of Dhs537bn rose by 10 per cent from September 2022 and were up 8 per cent in the nine months to September 2023.

ADCB joined the Net Zero Banking Alliance (NZBA), a group of more than 130 global banks committed to financing climate action, last November while tripling its sustainable finance commitment to $34bn (Dhs125bn) in line with the UAE’s net zero by 2050 ambition.

Since 2021, the bank has raised and facilitated more than Dhs6.4bn in sustainable finance through green bonds, sustainability-linked loans, renewable energy project financing and green loans.

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