The ratings on National Bank of Abu Dhabi (NBAD) reflect its majority ownership by and strong relationship with the government of the oil-rich Emirate of Abu Dhabi (AA/Stable/A-1+), its strong domestic commercial position, robust profitability, strong capitalization, and adequate asset quality. The ratings are constrained by large single-name concentrations on both sides of the balance sheet, its high exposure to the real estate and construction sectors, and a narrow domestic market with increasing competition. NBAD is 70.5%-owned by the Abu Dhabi government through government agency Abu Dhabi Investment Council (ADIC, not rated). It is the second-largest bank in the United Arab Emirates (UAE; not rated), reporting total assets of UAE dirham (AED) 233.5 billion on March 31, 2011, and an
