Emirates International Investment Company (EIIC), the strategic investment arm of National Holding, on Friday acquired a 7.6 per cent stake in Abu Dhabi Islamic Bank (ADIB) from Mubadala Investment Company (Mubadala). This transaction brings EIIC’s total shareholding in ADIB to 47 per cent, signalling strong confidence in the prospects for the long-term growth of the UAE’s second-largest Islamic lender by assets.

EIIC has interests across diverse sectors including banking, asset management, real estate, hospitality, fintech as well as food and agriculture.

As a global investor, this transaction is in line with Mubadala’s strategy to create long-term value by optimising a global portfolio of investments across a variety of sectors. Mubadala remains committed to the UAE banking sector as one of the largest investors in the sector.

For the first quarter of 2023, Abu Dhabi Islamic Bank (ADIB) reported a growth in net profit of 54 per cent to reach Dhs1.1 billion, driven by significant growth as well as higher margins. The bank reported record revenues of Dhs2 billion for the same period, up by 45 per cent year-on-year. This was underpinned by an 81 per cent growth in funded income to Dhs1.4 billion, derived from growth in customer financing and higher margins. ADIB also delivered a record return on equity of 23.4 per cent. The Shariah-compliant bank continues to attract customers, welcoming 46,000 new customers in the first three months of 2023 alone.

Meanwhile, the Abu Dhabi index closed higher on Friday, boosted by gains in Abu Dhabi Islamic Bank after sovereign wealth fund Mubadala Investment sold its 7.6% stake in ADIB to the lender’s major shareholder, Emirates International Investment Company.

Posts transaction, the stake of Emirates International Investment Company in ADIB rose to 47%.

Agencies