Emirates NBD Egypt agreed to acquire HSBC Egypt’s deposit-rich retail banking business, while HSBC will retain its corporate and institutional banking operations in the country. Separately, UAE banking assets reached AED 5.633 trillion ($1.534 trillion) in May as private-sector lending continued to expand.

Elsewhere, Mashreq and several regional banks reported first-half earnings growth, TAQA raised $750 million through its first blue bond and Qatar expanded its real-time gross settlement system to foreign-currency transfers between local banks. UAE credit reports also began incorporating buy-now-pay-later information from Tabby and Tamara.

Read more on the week’s key developments:

1. Emirates NBD expands regional retail banking presence

Emirates NBD Egypt agreed on 2 August to acquire HSBC Egypt’s retail banking business, subject to regulatory approval. The business includes HSBC Egypt’s retail deposits, loans and customer accounts, together with the employees supporting the franchise. HSBC’s interim report valued the disposal group at $0.4 billion in assets and $2.8 billion in liabilities as of 30 June. The transaction is expected to complete in the second half of 2027 and generate an estimated $0.3 billion pre-tax gain for HSBC, including transaction and migration costs and write-offs.

The disclosed balance sheet shows that Emirates NBD is acquiring a deposit-rich retail franchise, adding customer relationships and retail funding at greater scale than the accompanying asset portfolio. The transaction expands Emirates NBD Egypt’s retail presence, while HSBC will retain its corporate and institutional banking operations in the country.

2. UAE banking assets reach $1.53 trillion as private credit expands

The CBUAE’s Monetary and Banking Developments report, released on 28 July, showed gross banking assets rising 1.1% month on month to AED 5.633 trillion ($1.534 trillion) at the end of May. Gross credit increased 0.5% to AED 2.733 trillion ($744.1 billion), led by lending to companies and individuals, while deposits stood at AED 3.463 trillion ($942.3 billion). Separately, the central bank maintained its Base Rate at 3.65% on 29 July following the US Federal Reserve’s decision to leave rates unchanged.

The figures show that private-sector borrowing remained the main source of domestic credit growth, while a 3.6% increase in non-resident deposits added to the banking system’s funding base. With the dirham’s dollar peg transmitting the Federal Reserve’s policy stance to the UAE, the unchanged Base Rate preserves the prevailing interest-rate environment as banks continue to expand private-sector lending.

3. Mashreq’s first-half pre-tax profit rises 18%

On 30 July, Mashreq reported group profit before tax of AED 4.8 billion ($1.3 billion) for the first half of 2026, an increase of 18% year on year. Net profit after tax reached AED 4.0 billion ($1.1 billion), while operating income rose 10% to AED 6.8 billion ($1.9 billion). Customer deposits increased 28% year on year to AED 227.2 billion ($61.9 billion) and loans and advances grew 26% to AED 169.1 billion ($46.0 billion).

Mashreq plans to pursue further growth in fee-generating and transaction-banking activities, supported by investment in AI, digital infrastructure and its cross-border trade corridors. Non-interest income accounted for 38% of first-half operating income, while deposit growth exceeded lending growth and reduced the loan-to-deposit ratio to 74%. The bank enters the second half with a 0.9% non-performing loan ratio, 271% provision coverage and a capital adequacy ratio of 16.9% as it continues expanding its balance sheet.

4. Arab Bank’s first-half profit reaches $571 million

On 3 August, Jordan-headquartered Arab Bank Group reported net profit after tax of $570.9 million for the first half of 2026, an increase of 7% from $535.3 million in the same period last year. Total income grew 3%, supported by higher fee and commission income. The group’s loan portfolio increased 6% year on year to $42.1 billion, while customer deposits rose 6% to $58.8 billion and total assets increased 7% to $80.3 billion.

Management identified the reactivation of Arab Bank’s presence in Syria, the development of its recently launched Iraqi operations, an Islamic banking window in Algeria and further growth in wealth and private banking through Arab Bank Switzerland as areas of expansion. The initiatives add new regional operations and fee-generating businesses to a group whose first-half growth was already supported by higher commission income.

5. Boursa Kuwait reports KWD 13.7 million first-half attributable profit

On 30 July, Boursa Kuwait reported net profit attributable to shareholders of the parent company of KWD 13.74 million ($44.8 million) for the first half of 2026, down 9.1% year on year. Total operating revenue reached KWD 23.39 million ($76.2 million), while operating profit stood at KWD 17.11 million ($55.7 million). Total trading value reached KWD 9.82 billion ($32.0 billion), with institutional investors accounting for 70.08% of market activity and international investors for 18.79%.

Second-quarter net profit returned to year-on-year growth, partly offsetting the weaker first quarter and reducing the first-half decline to 9.1%. Boursa Kuwait is also broadening its product base through its fixed-income platform and planned exchange-traded funds. Increased issuance, listings and secondary-market trading would give the exchange additional sources of transaction and listing revenue beyond equities.

6. BBK reports 10% increase in first-half attributable profit

On 29 July, Bank of Bahrain and Kuwait Group reported net profit attributable to the owners of the bank of BHD 42.5 million ($113.0 million) for the first half of 2026, up 10.1% from BHD 38.6 million ($102.7 million) a year earlier. Net interest income increased 7.8% to BHD 63.3 million ($168.4 million), fee and commission income rose 12.1% to BHD 11.1 million ($29.5 million), and investment and other income increased 66.1% to BHD 18.6 million ($49.5 million). Total operating income reached BHD 93.0 million ($247.3 million).

Higher net interest income and fees supported the result, while BHD 7.7 million ($20.5 million) of investment-related gains made a material contribution to non-interest income. Operating expenses rose 18.5% and net provisions increased 31.6%, both faster than net interest and fee income. The composition of the result makes growth in recurring income an important measure of whether BBK can offset higher operating and credit costs in subsequent periods.

7. IMF urges Saudi Arabia to prioritise Vision 2030 investment

On 29 July, the International Monetary Fund concluded its 2026 Article IV Consultation with Saudi Arabia, reporting that the economy grew 4.6% in 2025 as higher oil production and domestic demand supported oil and non-oil activity. The IMF said the Vision 2030 investment programme remained central to diversification but recommended further prioritisation and sequencing of projects to manage financing requirements and preserve fiscal and external buffers.

The pace and selection of investment projects will influence corporate credit demand, government-related borrowing and capital-market issuance. Greater prioritisation could direct bank and market financing toward projects with clearer commercial returns, while increased private-sector participation would broaden the sources of capital supporting the programme.

8. TAQA raises $750 million through first blue bond

On 30 July, Abu Dhabi National Energy Company, known as TAQA, raised $750 million through a private placement of five-year blue bonds. The bond carries a 5.125% coupon and is listed on the London Stock Exchange’s International Securities Market. Proceeds will finance or refinance eligible sustainable water and wastewater projects under TAQA’s updated Green and Blue Finance Framework.

The transaction extends TAQA’s labelled financing from green energy into water infrastructure, covering eligible investments across water supply, treatment and wastewater management. It also expands the range of infrastructure assets that TAQA can finance under its sustainable-finance framework. TAQA described the issuance as the largest blue bond from an integrated power and water utility globally and the largest blue bond issued in EMEA.

9. Qatar expands RTGS to foreign-currency transfers

The Qatar Central Bank’s Financial Stability Review, released on 2 August, showed that the country’s payment systems processed 497.5 million transactions worth QAR 10.27 trillion ($2.82 trillion) in 2025. QA-RTGS settles interbank transfers, money-market and liquidity operations, public debt and QCB securities, as well as net obligations generated by retail payment systems. In December, QCB extended the system to foreign-currency transfers between local banks.

The extension allows participating banks to process and settle both Qatari riyal and foreign-currency transfers through domestic central-bank infrastructure. This broadens QA-RTGS beyond local-currency settlement and gives banks a domestic channel for eligible foreign-currency transfers. The system’s role in settling obligations from other payment platforms also makes its operational continuity central to Qatar’s wider payments infrastructure.

10. UAE credit reports incorporate buy-now-pay-later data

Etihad Credit Bureau has expanded UAE credit reports to include buy-now-pay-later account information supplied by Tabby and Tamara, effective from July 2026. The change applies to existing and new customers of both providers and includes relevant historical transactions. Lenders and other authorised entities can use the expanded information when assessing consumers’ financial obligations and repayment behaviour.

Bringing BNPL accounts into the credit-reporting system gives lenders a more comprehensive view of consumers’ commitments and supports more robust credit-risk assessments. It also brings a growing form of short-term consumer finance within the established reporting framework. For responsible BNPL users, their repayment records may also contribute to their broader credit standing. Current coverage is limited to information supplied by Tabby and Tamara.

What to watch

The Arab Regional Conference on Combating Money Laundering and Countering the Financing of Terrorism (11–12 August), the Central Bank Payments Conference (31 August–2 September), AIM Congress 2026 in Dubai (7–9 September), The Central Bank of Egypt's Monetary Policy Committee meeting (27 August)

TAB Middle East Weekly Brief is a regular round-up of developments driving transformation in the Middle East banking sector and what to watch.