Majority ownership by the Abu Dhabi government Strong domestic commercial position Robust profitability Good asset quality indicators A narrow domestic market with increasing competition Significant concentration risks Rapid loan growth in a weakened operating environment High exposure to the real estate and construction sectors The ratings on National Bank of Abu Dhabi (NBAD) reflect its ownership by and special relationship with the government of the oil-rich Emirate of Abu Dhabi (AA/Stable/A-1+), strong domestic commercial position, robust profitability, and good asset quality. The ratings are constrained by the bank's narrow domestic market with increasing competition, large concentrations, and rapid loan growth in a weakening operating environment. NBAD is the second-largest bank in the United Arab Emirates (UAE; not rated) with total
