Middle East’s best Islamic transaction bank 2026: First Abu Dhabi Bank

In a region where trade, capital and liquidity increasingly move across borders, First Abu Dhabi Bank (FAB) has built a proposition that combines a strong domestic franchise with regional connectivity. It has created a platform that supports clients across the Middle East through a growing suite of Islamic cash management, liquidity and trade finance solutions.

The bank’s success during the assessment period reflects a deliberate effort to modernise Islamic transaction banking by developing products that respond directly to the evolving treasury requirements of corporates, financial institutions and government-related entities. Rather than focusing solely on product breadth, FAB has focused on creating scalable solutions capable of supporting liquidity and transaction flows across multiple markets.

One example is the launch of the Islamic Covered Drawing facility, designed to help clients manage short-term funding and working-capital requirements through a Shariah-compliant structure based on commodity murabaha. The facility allows customers to access liquidity directly through their operating Islamic accounts without the administrative burden associated with traditional drawdown processes. The product gained rapid market acceptance, with facilities totalling more than AED300 million fully utilised by several clients shortly after launch, demonstrating strong demand for more flexible Islamic liquidity solutions.

What differentiates FAB at a regional level is its ability to connect liquidity solutions with trade and transaction banking capabilities

FAB’s commitment to innovation is equally evident in liquidity management. The bank introduced a wakala-based nine-day notice period deposit, providing corporate and institutional clients with a new way to optimise surplus cash while maintaining short-term access to funds. The solution addresses a longstanding challenge for treasury teams seeking to balance liquidity and returns within a Shariah-compliant framework.

However, what differentiates FAB at a regional level is its ability to connect liquidity solutions with trade and transaction banking capabilities. The bank expanded its Islamic financial institution trade financing programme, enabling banks across the Gulf Cooperation Council (GCC) to deliver Shariah-compliant trade liquidity to their own customers through standardised wakala and Murabaha structures. The programme is designed to be replicated efficiently across markets while maintaining robust Shariah governance and risk controls.

These achievements reflect a broader strategy centred on regional connectivity. As trade corridors deepen and treasury operations become increasingly centralised, corporates and financial institutions are looking for partners that can provide consistent Islamic transaction banking capabilities across markets. FAB has strengthened its standing as one of the Middle East’s leading Islamic transaction banks and a key enabler of cross-border Islamic commerce and liquidity management.