Majority ownership by the government of Abu Dhabi; Robust profitability; Strong asset quality; and Strong domestic commercial position. A narrow domestic market with increasing competition; Significant concentration risks; Volatile public sector deposits; and Although adequate, lower capitalization than its regional peers. The ratings on the National Bank of Abu Dhabi (NBAD) reflect the bank's ownership and privileged relationship with the government of the oil-rich Emirate of Abu Dhabi (not rated), its strong domestic commercial position, and robust financial profile. The rating is constrained by the bank's narrow domestic market, the volatility of public sector deposits, and NBAD's only adequate capital position. NBAD is the largest bank in the United Arab Emirates (UAE; not rated) with total assets of United Arab
