FGB’s Journey from Local Giant to Global Leader: The Birth of First Abu Dhabi Bank

First Gulf Bank was the first to be established back in 1979. It is a symbol of financial innovation within the UAE. Growth in a region means quick modernization and reach to the global world. Now here FGB thrived by adapting the changing needs of consumers as well as businesses. In 2016, it was cemented in the merger with National Bank of Abu Dhabi to create the largest bank by assets in the UAE-in First Abu Dhabi Bank, or FAB. That merger provided a new era for UAE banking and reflects the spirit of forward-thinking leadership that has long characterized FGB.

First Gulf Bank was founded in the Emirate of Abu Dhabi with the role of acting as an instrument to the growing economic and financial services of the UAE. During its nascent stages, the bank functioned solely through traditional banking services, but once the UAE become a financial global hub, the same FGB would adapt to suit the themes that define the nation’s financial life. The bank expanded its wholesale, consumer, as well as treasury banking sectors through the provision of business-to-business solutions and other retail customers. FGB had increased to three principal departments by the time it restructured itself in 2013, namely, the Wholesale Banking Group, the Consumer Banking Group, and the Treasury & Global Markets Group. Through this restructuring, FGB streamlined its operations as well as improved on its service delivery in the emerging markets, especially Islamic banking and bank assurance.

FGB was not satisfied with making only UAE its clients. It wanted to expand globally. The bank moved into the key international markets of Singapore, Qatar, and the UK. Its subsidiary reach increased through the India, South Korea, Hong Kong, and Libya representation offices. A significant point in the international strategy of the bank was marked by the launch of a Global Wealth Management service in Singapore in 2014. It offered wealth management solutions to high-net-worth clients, thus moving FGB into becoming a global player in the financial services sector. Along the same year, the bank expanded its presence by opening a new representative office in South Korea, hence establishing its strong global presence.

Far from being satisfied with this, however, its international ambitions didn’t stop there. It made headlines by coming out with the very first 250 million Australian-dollar Kangaroo bond, marking its debut in the Australian debt market. FGB was also able to make history again when it emerged as the first Middle Eastern bank to issue a bond in Japan’s Tokyo Pro-Bond market, sustaining its financial innovations on the world stage.

By 2014, FGB had emerged as one of the strongest financial institutions in the UAE. It held shareholder equity of AED 34.1 billion, positioning it among the largest in the region as an equity based bank. FGB produces strong financial results every year. In 2014, net profit reached AED 5.66 billion, 18% more than the previous year. The strength did not go unnoticed, and the international rating agencies commended it highly. Well, Capital Intelligence actually conferred an A+ Financial Strength Rating on FGB back in 2014, and it is also in this time when the RAM Ratings gave FGB that highly prized AAA score. Fitch also did not deviate and reconfirmed its rating as A+ long-term, showing that one would be wrong if he or she would say that financial robustness and stability are only concepts because, after all, it is part of FGB’s makeup.

2016 was also marked by history for FGB with the development of having shareholders approve a merger with National Bank of Abu Dhabi, or NBAD. This merged entity, in the format of a share swap, now became First Abu Dhabi Bank (FAB), the country’s largest bank in terms of assets. Under the arrangement, shareholders of FGB received 1.254 shares of NBAD for every share held of FGB, which provided it with financial muscle to compete on the global platform. The merger was the result of a dream to create a more powerful banking entity that could better serve both the UAE and international markets. The new entity FAB promptly became the largest bank in the MENA region and complemented the massive efforts of the UAE towards building up a quality financial sector. Already in 2014, FGB had started sending signals that it intended to modernize and rebrand. The bank announced a new logo, and the bank now goes by its acronym “FGB” to go with its forward-looking attitude. This was part of a long-term strategy to expand locally and internationally, as it maintained the relationship with its Emirati heritage.

Sponsorships were also strategic, such as FGB being a local sponsor of Ferrari World Abu Dhabi, which is the largest indoor Ferrari-branded theme park in the world. The bank also opened the FGB Arena at Zayed Sports City, which is a multi-use venue hosting sporting events, concerts, and exhibitions.