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; not rated) with total assets of United Arab Emirates dirham (AED) 83.7 billion ($22.7 billion) at Dec. 31, 2005. The bank has a leading position in corporate banking and is rapidly growing its retail-banking business. Although small in absolute terms, its customer
