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