FAB to hold 10 pc in new bank with claim for another 10 pc
ABU DHABI/October 20: ADQ, one of the most diversified investment groups in Abu Dhabi, will use the legacy FGB licence it gets from First Abu Dhabi Bank (FAB) to establish a new digital bank with an initial capital of approximately AED2 billion
FAB, the UAE’s largest bank and one of the world’s largest and safest financial institutions, has received shareholder on Tuesday (October 20) approval to transfer its legacy FGB banking licence to ADQ.
ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, will use the licence to create the group’s new digital bank.
This follows the conclusion of a General Assembly Meeting on Tuesday, October 20, at FAB’s headquarters in Abu Dhabi.
Under the terms of the agreement, FAB will transfer ownership of its legacy FGB banking licence to ADQ in exchange for 10 per cent of the new entity’s share capital, and preferential access to another 10 per cent of the shares in the event of an Initial Public Offering (IPO).
The Abu Dhabi headquartered ADQ and FAB have a shared vision to enable the UAE government’s long-term digital ambitions.
The licence transfer supports FAB’s digital strategy to explore new business models and foster new opportunities to innovate and unlock the transformative power of technology and data to deliver the most secure, convenient and relevant financial services.
André Sayegh, Group Chief Executive Officer, First Abu Dhabi Bank (FAB), said his bank is fully confident that ADQ’s new digital bank presents a significant investment opportunity for FAB and its shareholders.
“The UAE is at the forefront of innovation in the financial services space, underpinned by a vibrant mix of market dynamics, skilled talent and highly developed infrastructure,” Sayegh added.
Mohamed Hassan Al Suwaidi, CEO of ADQ, said his group has identified the opportunity to create a standalone digital bank to further enhance Abu Dhabi’s digital economy while strengthening ADQ’s financial services portfolio.