Abu Dhabi Commercial Bank extended its profit growth streak to 20 consecutive quarters, with first-half profit before tax rising 28%. Earnings growth across other major Gulf banks was more varied. Emirates NBD’s profit before tax increased 5% and First Abu Dhabi Bank’s rose 3%, while Al Rajhi Bank’s net income grew 14%, compared with 7% at Saudi National Bank. Elsewhere, Dubai International Financial Centre surpassed 10,000 active registered companies, Saudi Arabia expanded its open-banking ecosystem and Israeli banks prepared to terminate correspondent relationships with Palestinian lenders. New initiatives in embedded finance and cross-border payments also highlighted the continued development of the region’s financial infrastructure. Read more on the week’s key developments: 1. Abu Dhabi Commercial Bank records 20th consecutive quarter of profit growth Abu Dhabi Commercial Bank (ADCB) announced its second-quarter 2026 financial results on 23 July, reporting record profit before tax of AED 3.826 billion ($1.04 billion), up 26% year-on-year. This marked its 20th consecutive quarter of profit growth. For the first half, profit before tax increased 28% to a record AED 7.607 billion ($2.07 billion), while net profit after tax reached AED 6.744 billion ($1.84 billion). First-half profit growth was supported by a 12% increase in operating income and a 36% decline in impairment charges. Non-interest income rose 22%, driven by higher fee and trading income, while net loans increased 10% from year-end. The results show that ADCB combined balance-sheet expansion with broader revenue growth and lower credit costs. 2. First Abu Dhabi Bank records 3% rise in first-half pre-tax profit First Abu Dhabi Bank (FAB) announced its first-half 2026 financial results on 23 July, reporting a 7% year-on-year increase in operating income to AED 19.50 billion ($5.31 billion). Profit before tax increased 3% to AED 13.20 billion ($3.59 billion), while net profit rose 1% to AED 10.73 billion ($2.92 billion). Total assets reached AED 1.41 trillion ($384 billion), up 2% from year-end. Net loans increased 7% from year-end, while first-half profit before tax rose 3%. The difference suggests that asset growth is translating into earnings more gradually, increasing the importance of margins, fee income, funding costs and operating efficiency. 3. Emirates NBD delivers record first-half profit as lending and deposits grow Emirates NBD announced its first-half 2026 financial results on 23 July, reporting record profit before tax of AED 16.2 billion ($4.41 billion), up 5% year-on-year. Net profit reached AED 12.9 billion ($3.51 billion), while total income increased 16% to AED 27.9 billion ($7.60 billion), supported by a 13% increase in net interest income and 25% growth in non-funded income. The faster growth in non-funded income broadened the bank’s earnings beyond interest from lending. The consolidation of RBL Bank also expanded Emirates NBD’s balance sheet and earnings base in India, adding AED 44 billion ($12.0 billion) in loans and AED 43 billion ($11.7 billion) in deposits. 4. DIFC surpasses 10,000 active registered companies Dubai International Financial Centre (DIFC) announced on 28 July that it had surpassed 10,000 active registered companies following a record first half of 2026. The total reached 10,018 at the end of June, up 30% year-on-year, after DIFC attracted 2,318 new active registered companies over the preceding 12 months. The expansion increases the concentration of financial institutions, investors and service providers operating within the DIFC ecosystem. Regulated financial-services firms increased 16% to 1,134, while the number of AI, fintech and innovation companies rose 39% to 1,933. 5. Al Rajhi outpaces SNB as Saudi banks report divergent growth Al Rajhi Bank’s net income increased 14% in the first half, while operating income rose by a similar rate. Its financing portfolio expanded 3% year-on-year to SAR 762 billion ($203 billion), while deposits rose 4% to SAR 688 billion ($183 billion). Saudi National Bank’s net income increased 7% and operating income rose 6%. Its financing portfolio grew 1.4% from year-end, including 2.4% growth in retail financing and 0.5% in wholesale financing. The results show different earnings trajectories within Saudi banking. Al Rajhi converted stronger financing and operating-income growth into a faster increase in profit, while SNB reported more moderate earnings growth alongside slower financing expansion. 6. Saudi fintech Fina secures $75 million Shariah-compliant facility Fina, the embedded-finance platform of Saudi B2B commerce and fintech group SILQ, secured a $75 million Shariah-compliant financing facility from Fasanara Capital on 20 July. The facility will support embedded working-capital products for small and medium-sized enterprises in Saudi Arabia. The funding allows merchants to access working capital through the digital platforms they already use to buy, sell and collect payments. Fina aims to provide SAR 3 billion ($800 million) in liquidity to more than 2,000 businesses during 2026, after deploying SAR 1.5 billion ($400 million) over the preceding 12 months. Its expansion could increase competition in SME financing by using transaction and operational data to assess businesses and provide funding within existing commercial workflows. 7. Israeli banks prepare to terminate links with Palestinian lenders Israel Discount Bank plans to stop providing correspondent banking services to Palestinian banks on 1 September 2026, while Bank Hapoalim is expected to follow on 1 October, according to Israeli officials and Palestinian Monetary Authority governor Yahya Shunnar. Shunnar said the banks processed approximately ILS 51 billion ($16.6 billion) in transactions during 2025. He added that 90% of Palestinian exports go to Israel, while all imports originate from or pass through it. Israel’s finance ministry said it was working with the banks to preserve correspondent activity while addressing money-laundering and terrorist-financing risks. Ending the relationships would limit Palestinian banks’ ability to settle shekel payments and finance trade through regulated banking channels. The shift could increase the use of cash and informal payment mechanisms, making transactions less transparent and potentially increasing financial-crime risks. 8. SAMA licenses Malaa to provide open-banking services The Saudi Central Bank (SAMA) licensed Malaa Company for Information Technology to provide payment-account information services under Saudi Arabia’s open-banking framework on 22 July. The approval brought the number of licensed companies offering payment services in the country to 33. The licence expands the pool of regulated providers able to access customer-authorised account information. It could increase competition in account aggregation and financial-management services, while allowing banks’ accounts and products to be incorporated into more third-party platforms. 9. Kuwait raises KWD 150 million through domestic debt issuance The Central Bank of Kuwait, acting on behalf of the Ministry of Finance, issued KWD 150 million ($487 million) in three-year Treasury bonds and public-debt tawarruq instruments on 22 July. The securities were allocated through a competitive auction at a uniform yield of 2.50%. The issuance provides Kuwaiti banks with additional sovereign assets for liquidity and balance-sheet management. It also adds a current three-year point to Kuwait’s government yield curve, providing a reference for the pricing of corporate financing and other fixed-income instruments. 10. UAE and Indonesia explore cross-border payment connectivity Central Bank of the UAE governor Khaled Mohamed Balama met Indonesian ambassador Judha Nugraha on 26 July to discuss financial and banking cooperation. The two sides explored connecting their payment systems and facilitating cross-border payments. Nugraha also expressed support for implementing local-currency transactions. A future payment link could make transactions between the UAE and Indonesia faster and less costly while supporting bilateral trade and investment. However, the discussions remain preliminary, with no formal agreement, implementation timetable or technical framework announced. What to watch The US Federal Reserve’s monetary policy decision and any corresponding GCC central bank rate announcements (29 July), Saudi Awwal Bank’s second-quarter earnings (29 July) and the Arab Regional Conference on Combating Money Laundering and Countering the Financing of Terrorism (11–12 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.
