First Abu Dhabi Bank’s Record Profit Puts Regional Deal Machine in High Gear as Gulf Credit Cycle Turns

First Abu Dhabi Bank is opening 2026 with a record set of numbers and an ambitious cue to regional peers: use the next phase of the credit cycle to lean into cross‑border deals, green funding and fee‑rich investment banking. The UAE lender this week reported its highest‑ever full‑year profit for 2025, with management pointing to broad‑based growth across corporate lending, markets and fee income as it eyes deeper expansion into Saudi Arabia, Egypt and Asia.​

The bank’s investment banking and markets franchise delivered a 16 percent surge in revenues to 11.79 billion dirhams (about 3.21 billion dollars), powered by a 29 percent jump in lending year‑on‑year and robust client activity in debt capital markets, risk solutions and trade finance. Executives say that as global rates peak and then drift lower, large Gulf corporates and sovereign‑linked entities are accelerating issuance and refinancing plans—especially in infrastructure, energy transition and strategic real‑estate projects.

For FAB, the results validate several years of investment in regional connectivity, from branch and representative offices to digital channels and transaction‑banking platforms that tie Gulf cash‑rich corporates into Asian and African trade corridors. The bank has used its balance sheet to anchor sizable syndicated loans and bond deals for clients in the UAE, Saudi Arabia and Egypt, positioning itself as a go‑to arranger for green and sustainable finance as well.

That positioning matters as MENA economies move into a more complex phase of the credit cycle. On one side, higher‑for‑longer rates have sharpened competition for deposits and raised funding costs; on the other, regional governments are pushing ahead with large‑scale projects in logistics, industrial zones, tourism, data centres and clean energy, which require long‑duration, often foreign‑currency, financing. Gulf banks with strong capital buffers and diversified fee engines are better placed to intermediate that demand.

FAB’s performance also underscores how markets and investment‑banking revenues are becoming less volatile and more annuity‑like for leading regional lenders. Instead of relying purely on opportunistic trading or episodic mega‑deals, the bank has built flows businesses in FX, rates, commodities and derivatives that support clients’ hedging and treasury needs throughout the year. This reinforces wallet share and provides a natural pipeline for event‑driven mandates when clients refinance, tap capital markets or execute M&A.​

Competitive dynamics are heating up. Saudi lenders with growing investment‑banking arms, Qatari institutions and regional units of global banks are all chasing mandates on sovereign, quasi‑sovereign and corporate deals from Riyadh to Muscat. FAB’s record year raises the bar, but also signals that the regional fee pool is expanding as balance‑sheet capacity and project pipelines grow.

Geographically, the bank is signalling a pivot deeper into Asia and North Africa, in line with trade and capital‑flow patterns. Executives have highlighted opportunities to structure funding for UAE and Saudi clients investing in Indonesia, Vietnam, Malaysia and India, as well as to support inbound Asian investors in Gulf assets, from IPOs to private credit. That dovetails with broader trends of ASEAN and GCC economies tightening links in energy, logistics and digital infrastructure.

At the same time, regulators and rating agencies are watching leverage, asset quality and concentration risks. The Gulf’s rapid build‑out of mega‑projects, tourism zones and industrial parks creates clusters of exposure that will test risk‑management frameworks if growth slows or execution stumbles. For now, strong oil‑linked liquidity and diversified fee income give banks like FAB a buffer—but supervisors are pushing for tighter stress‑testing and capital planning.

For investors, FAB’s numbers reinforce a broader narrative: top‑tier Gulf banks are evolving into full‑service regional champions, blending balance‑sheet strength with capital‑markets reach and cross‑border capabilities. As 2026 unfolds, their ability to intermediate the region’s next wave of debt, equity and green‑finance flows will help determine whether Gulf financial hubs can fully monetise the economic transformation underway from Abu Dhabi to Riyadh and beyond.