Should I buy First Abu Dhabi Bank stock in 2025?

What is First Abu Dhabi Bank?

How much is the First Abu Dhabi Bank stock?

The price of First Abu Dhabi Bank stock is rising this week. Currently, the share is trading at 16.62 AED, reflecting a modest 0.12% increase over the past 24 hours but a 3.62% decline for the week.

With a robust market capitalization of 183.49 billion AED and a 3-month average daily volume of 4.25 million shares, FAB presents a strong market presence. The stock posts a P/E ratio of 10.60, a solid dividend yield of 4.51%, and has a beta indicating recent elevated volatility.

Given the recent price swing and strong fundamentals, investors should consider both the bank’s stability and the current market dynamism when evaluating opportunities.

Our full analysis on the First Abu Dhabi Bank stock

After a thorough review of First Abu Dhabi Bank’s Q1 2025 financial results and an in-depth assessment of the stock’s dynamics over the past three years, our proprietary data-driven algorithms—drawing on a synthesis of financial indicators, technical analytics, sector market data, and peer group benchmarking—present a compelling case for renewed focus on FAB. The confluence of robust operational outperformance, strong technical signals, and a supportive sectoral context suggests that the bank’s equity may be poised for a notable re-rating. So, why might First Abu Dhabi Bank stock once again become a strategic entry point into the regional financials sector in 2025?

Recent Performance and Market Context

First Abu Dhabi Bank PJSC (FAB) enters mid-2025 as the preeminent banking institution in the UAE and one of the most systemically significant players in the broader MENA financial ecosystem. Despite a 12-month negative performance (-41.09%), the equity narrative appears dynamic—a pattern not uncommon among blue-chip financials undergoing strategic transformation. After correcting from highs of 16.68 AED earlier this year, FAB’s share price has stabilized near its current level of 16.62 AED (as of 30 May 2025), tracing a marked recovery from its annual low of 11.46 AED.

Recent sessions have seen volatility, with the stock sliding -3.62% over five days and -10.07% for the month. However, recent market data also indicate a stabilization phase, as intraday trade has narrowed within the 16.46–16.74 AED range. Importantly, these adjustments follow the announcement of record dividends and an impressive Q1 performance, which have infused renewed institutional and retail interest into the name.

From a sector perspective, FAB is operating in a fortuitous macroeconomic environment. The UAE’s GDP growth prospects remain robust amid ongoing economic diversification, increased capital inflows, and the acceleration of infrastructure investment ahead of Expo 2030. Moreover, elevated oil prices and enhanced non-oil sector performance in the Gulf underpin liquidity conditions—factors known to favor banking profitability and sector multiples across the ADX.

Technical Analysis

Technical momentum for FAB has turned overwhelmingly constructive, supported by a suite of bullish indicators and an encouraging market structure. As of 30 May 2025, the aggregate technical signal is “Strong Buy” across both momentum and trend-following toolkits:

• Relative Strength Index (RSI, 14): At 74.10, the RSI signals entry into the overbought zone, often suggestive of robust underlying demand—especially when confirming a break from previous consolidation levels.
• MACD (12,26): With a positive reading of +0.53, MACD reinforces the nascent uptrend, supported by crossovers indicative of persistent upward momentum.
• Williams %R: At -6.25, this denotes further overbought conditions, underscoring the possibility of trend continuation in the near term.

All moving averages (MA)—from the 5-day (16.17 AED) to the 200-day (13.89 AED)—are generating buy signals, reflecting a harmonious trend alignment across timeframes. Notably, the price remains above all key MA levels, often interpreted as technical confirmation of a bullish phase. Support is well-established at 15.94 AED, with resistance capped at 16.30 AED and a pivot point at 16.10 AED. The tight clustering of these levels augments probability for a technical breakout, while shielding recent buyers from excessive drawdown risk.

Short- and medium-term technical momentum appears particularly favorable, with the stock tracing an ascending structure. Given current indicators, FAB could be in the early stages of a new accumulation phase—attracting both tactical traders and longer-term investors seeking to position ahead of further upside catalysts.

Fundamental Analysis

The recent operational results unequivocally demonstrate FAB's fundamental resilience and upside. In Q1 2025, the bank delivered:

• Total revenue of 8.81 billion AED, up 11% year-on-year, and a
• Net profit of 5.13 billion AED, surging 23% year-on-year,
• Plus a pre-tax profit of 6.13 billion AED (+22%).

These figures not only exceeded consensus estimates, but they also marked a historic milestone: FAB’s total assets surpassed 1.3 trillion AED for the first time. This uptrend is reinforced by annual figures for 2024, with revenues at 31.6 billion AED (+15% YoY) and net profit at 17.1 billion AED (+4% YoY), demonstrating powerful operational leverage.

Valuation offers further comfort:

• P/E ratio at 10.60 remains at a pronounced discount relative to leading MENA financials and global sector peers, especially when factoring in the bank’s dividend yield, asset growth, and earnings reliability.
• P/B ratio of 1.66 is solidly justified by the quality of FAB’s loan book, prudent risk management, and its premium franchise status.
• Dividend yield of 4.51% (with 0.75 AED per share for 2024) is among the highest in the GCC’s banking landscape, solidifying its appeal for yield-driven investors.

Strategically, FAB benefits from:

• Dominant market position as the UAE’s largest bank by assets,
• A powerful brand recognized across the GCC,
• Sustained innovation (notably as the first MENA bank to deploy the Oracle-Mastercard B2B solution),
• Broad geographical diversification and deepening investment banking operations,
• Plus a structurally sound balance sheet and high Fitch rating.

These multifaceted strengths foster a resilient growth trajectory and provide a compelling backdrop for re-rating.

Volume and Liquidity

Liquidity remains a defining characteristic of FAB’s market profile:

• Average daily volume (65-day) stands at 4.25 million shares, signaling sustained institutional participation and robust retail engagement.
• Of 11.05 billion shares outstanding, a public float of 4.88 billion ensures ample liquidity—an essential attribute for pricing efficiency and minimizing transaction costs for both active traders and buy-and-hold investors.

This depth in market liquidity supports dynamic valuation readjustments and amplifies the impact of positive news flow or strategic catalysts, enabling more precise entry and exit strategies for investors of all profiles.

Catalysts and Positive Outlook

Several tangible growth and value-creating catalysts are converging:

• Record dividend approval: The historic 8.3 billion AED payout for 2024 (approved in March 2025) underscores FAB’s strong and growing distributable profit pool, enhancing investor confidence and total return appeal.
• Major restructuring: The ongoing reorganization into four distinct divisions (announced in 2025) aims to sharpen operational focus in the UAE and Gulf, unlocking further shareholder value and positioning FAB for scalable regional expansion.
• Technological leadership: FAB’s early adoption of cutting-edge fintech solutions (e.g., Oracle-Mastercard B2B) cements its status as an innovation frontrunner, allowing it to capture new flows and service revenue streams in the rapidly evolving digital banking sphere.
• Favorable macro tailwinds: Ongoing UAE economic acceleration, resilient oil pricing, and a growing demand for banking and investment services place FAB in an optimal spot to capture incremental market share and benefit from secular regional growth.

Investors may draw further confidence from sustained management stability under CEO Hana Al Rostamani and strong governance marks from leading credit rating agencies. All these factors point to a highly supportive context for sustained upgrades to FAB’s earnings power and market standing in the near- to mid-term.

Investment Strategies

• Short-term: The combination of technical breakout signals and recent dividend-driven accumulation phase highlights an opportune entry at a structurally sound technical level. Investors seeking near-term price momentum may find FAB attractive as positioning unfolds above its critical support at 15.94 AED, with defined resistance shortly ahead—potentially catalyzed by further positive news or sector-wide rallies.
• Medium-term: The bank’s restructuring, expansion into the wider Gulf, and ongoing technology-driven initiatives suggest that medium-horizon investors could benefit from earnings upgrades and positive EPS revisions not yet fully priced in by the market. Trading around technical lows with a fundamental growth story intact offers an appealing risk/reward configuration, with the 21.61 AED price target (+30% from current levels) lending tangible upside.
• Long-term: For those seeking core exposure to blue-chip financials in the ADX, FAB remains exceptionally well positioned:
• Attractive and sustainable dividend policy,
• Structural advantages in scale and innovation,
• Enduring macro and regulatory tailwinds,
• And a valuation that appears to significantly lag its operational reality.

Such an alignment may allow patient capital to benefit from both capital appreciation and income compounding as FAB capitalizes on UAE’s growth renaissance.

Is it the Right Time to Buy First Abu Dhabi Bank?

First Abu Dhabi Bank embodies the key traits sought by discerning investors at the intersection of growth, yield, and innovation. Record-beating earnings, robust asset expansion, strong governance, and an ambitious yet credible strategic roadmap all inform a constructive stance on the stock. The current share price, supported by powerful technical and fundamental tailwinds, seems to represent an excellent opportunity for those seeking exposure to the region’s foremost banking and financial franchise. With a steady dividend yield, clear medium-term catalysts, and market structure pointing towards renewed upside, the case for serious consideration of FAB as an entry point into MENA banking equities appears particularly timely.

In sum, First Abu Dhabi Bank stands out as a leading candidate for portfolio inclusion, with current market developments indicating substantial upside potential for investors ready to participate in the next phase of growth and transformation across the UAE’s dynamic banking sector.

How to buy First Abu Dhabi Bank stock in the UAE?

Buy First Abu Dhabi Bank (FAB) Stock Easily Online

Investing in First Abu Dhabi Bank (FAB) shares has never been simpler or more secure for UAE residents, thanks to regulated online brokers. With just a few clicks, you can access the Abu Dhabi Securities Exchange (ADX) and buy FAB shares either directly (spot buying) or through Contracts for Difference (CFDs), each method offering its unique advantages. Whether you prefer to own real shares for the long term or seek the flexibility of leveraged CFD trading, both paths are accessible online. Interested in finding the right broker for you? A detailed comparison is provided further below.

Spot Buying

Buying FAB shares for cash means becoming a direct shareholder in the largest bank in the UAE. You own actual shares, benefit from any dividends (like the recent 0.75 AED per share), and can hold or sell at any moment. UAE brokers typically charge a fixed commission per order—often around 20 AED (about $5–6 USD)—plus standard ADX exchange fees.

Example with a $1,000 stake

• FAB share price: 16.62 AED (approx. $4.52 at 3.68 AED/USD)
• With $1,000 (~3,680 AED) minus a 20 AED fee, you can buy around 220 shares of FAB.
• Gain scenario: If the share price rises by 10% (to 18.28 AED), your investment grows to 4,048 AED ($1,100).
• Result: +$100 gross gain, a 10% return on your initial $1,000, plus any potential dividends.

CFD Trading

Trading CFDs (Contracts for Difference) on FAB shares lets you speculate on price movements without owning the underlying stock. CFDs allow both long and short strategies, often with leverage. Typical costs include the spread (the buy/sell price difference) and overnight financing if you hold positions beyond the trading day.

Example with a $1,000 stake and 5x leverage

• You use $1,000 as margin to open a CFD position worth $5,000 market exposure in FAB.
• Gain scenario: If FAB shares increase by 8%, your CFD position earns 8% × 5 = 40%.
• Result: +$400 gain on a $1,000 investment (excluding fees and spreads). Remember: leverage increases both potential gains and losses.

Final Advice

Before investing, always compare brokers' fees, platforms, and trading conditions carefully—costs can vary widely and impact your returns. The right method for you depends on your goals: choose direct share ownership for long-term investing and dividends, or CFDs for short-term speculation with leverage. Explore our detailed broker comparison further down the page to take your next confident step toward owning a piece of First Abu Dhabi Bank.

Our 7 tips for buying First Abu Dhabi Bank stock

The latest news about First Abu Dhabi Bank

First Abu Dhabi Bank (FAB) reported record Q1 2025 results, exceeding analyst expectations with strong net profit growth. In its latest quarterly results, FAB posted a net profit of 5.13 billion AED, marking a 23% increase year-on-year, driven by robust growth in non-funded income streams and investment banking activities. Total assets surpassed 1.3 trillion AED for the first time, underlining the bank’s position as the largest lender in the UAE. Revenues for Q1 reached 8.81 billion AED, up 11% on the previous year, reflecting the successful execution of its diversified growth strategy. These results have been positively received by investors, consolidating FAB’s reputation as a resilient and high-performing regional financial institution.

FAB is undergoing a strategic restructuring, aimed at strengthening its Gulf operations and delivering enhanced shareholder returns. The bank has initiated a major reorganisation to separate its operations into four distinct divisions. This restructuring is designed to sharpen the bank’s focus on core markets within the Gulf region, increase operational agility, and unlock further value for shareholders. The move is anticipated to optimise business performance and further cement FAB’s leadership in the UAE’s competitive banking sector.

Technical analysis and market signals indicate a strong buy consensus for FAB stock, supported by multiple indicators. Latest technical readings show overwhelming bullish sentiment, with all major moving averages (short, medium, and long-term) flashing buy signals. Key oscillators, including the RSI at 74.1 and a positive MACD, indicate strong momentum, albeit near overbought territory—suggesting recent buying activity and potential for further positive movement. Analysts set a target price representing roughly 30% upside from the current level, reflecting optimism despite recent price volatility.

FAB approved its highest-ever cash dividend in March 2025, highlighting robust capital generation and commitment to shareholder value. The board sanctioned a 2024 dividend of 0.75 AED per share, totalling 8.3 billion AED, the largest in the bank’s history. This dividend distribution reflects FAB’s sustained profitability and solid capital base, offering a notable yield of 4.51%. The move has reinforced market confidence and demonstrated FAB’s status as a leading dividend payer on the Abu Dhabi Securities Exchange.

FAB maintains clear technological leadership in the region, being the first MENA bank to implement Oracle-Mastercard’s new B2B payments solution. This recent deployment underscores the bank’s focus on innovation and digital transformation, reinforcing its competitiveness in the rapidly evolving financial services landscape. By offering advanced transaction services to corporate clients, FAB is poised to capture further market share and align with the UAE’s ambitions as a regional fintech hub.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.