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. NBAD is the largest bank in the United Arab Emirates (not rated) with total assets of UAE dirham (AED) 117.5 billion ($32.0 billion) at Sept. 30, 2007, and an overall market share of about 12%. The bank has a leading position in corporate banking and is rapidly growing its retail banking business. Although small in absolute terms, its customer franchise is among the strongest
