The Financial Market Regulation and Development Agency has issued a permit to Abu Dhabi Commercial Bank (ADCB) to establish a subsidiary bank in Kazakhstan. It is noted that the bank's assets exceed $210 billion.
WHAT HAS BEEN APPROVED
The regulator has approved several aspects of the new bank's creation simultaneously. In addition to the permit to open a subsidiary bank, the status of a bank holding company and the creation of a subsidiary organisation have been agreed upon.
In relation to the new bank, ADCB will act as the sole shareholder. The parent structure will be responsible for forming the authorised capital, strategic management, as well as financial and operational support within the framework of the legislation.
WHAT IS KNOWN ABOUT THE BANK
ADCB is among the largest banks in the United Arab Emirates (UAE). The main shareholder is Mubadala Investment Company PJSC, which is wholly owned by the Abu Dhabi government.
The bank holds international credit ratings of A+/F1/Stable on the Fitch Ratings scale. As of 31 December 2025, its total assets exceeded $210 billion, equity capital was more than $24 billion, and net profit for the year amounted to over $3 billion.
WHAT SERVICES THE NEW BANK PLANS TO OFFER
The bank being created intends to provide a full range of banking services. The development of Islamic finance through an 'Islamic window' mechanism has also been announced.
Obtaining a universal banking licence in accordance with the requirements of the Law 'On Banks and Banking Activities in the Republic of Kazakhstan' is expected after the completion of infrastructure preparation and all launch procedures.
WHY THIS IS IMPORTANT
The news about ADCB appears to be a purely technical regulatory decision — the issuance of a permit, approval of status, standard procedures. But behind it lie several processes that are worth examining separately.
For example, an important detail that could easily be missed in the news flow is that ADCB already operates in Kazakhstan through ADCB Islamic Bank (formerly Al Hilal Bank) — the first Islamic bank in Kazakhstan and the CIS, founded in 2010 through an agreement between the two governments. That is, this is not about a completely new player 'entering' the market from scratch, but rather a qualitative expansion of presence of a structure that already knows the local market, client base, and operational environment.
Furthermore, ADCB's arrival is not an isolated event. In January 2026, President Kassym-Jomart Tokayev signed a new law on banks, one of whose key objectives was the liberalisation of bank licensing through the introduction of basic and universal licences to reduce concentration and foster competition. Even earlier, in June 2025, a large-scale liberalisation of bank opening and licensing procedures was carried out, removing duplicate documents and redundant information from the process.
The arrival of ADCB is, in essence, one of the practical results of these reforms — alongside Lesha Bank (a Qatari investment bank that acquired the Kazakh Bereke Bank in 2024) and BNK Financial Group (a South Korean financial conglomerate represented in Kazakhstan through BNK Finance Kazakhstan). On the instruction of President Tokayev, foreign banks were deliberately attracted to the banking sector from South Korea, Qatar and the UAE to strengthen competition.
In other words, ADCB did not arrive despite the system, but alongside it, as part of a conscious policy of diversifying the banking market.
WHAT ADCB IS LOOKING FOR IN KAZAKHSTAN
The bank itself, back in July 2024 during the rebranding of Al Hilal, articulated its position: ADCB views Kazakhstan as a hub for corporate banking in Central Asia — a region with a combined economy of $1.751 trillion.
From this perspective, Kazakhstan is not so much an end market for ADCB as a launchpad. The growing trade turnover between the UAE, Kazakhstan and Central Asia makes presence via a universal licence strategically significant. Especially since the assets of Kazakhstan's banking sector in 2025 grew by 15% to 70.8 trillion tenge, and business loans showed maximum growth since 2007. The market is alive and growing.
POTENTIAL RISKS
The Kazakh banking market is highly concentrated: several large players occupy dominant positions and have developed digital infrastructure that a foreign bank cannot quickly replicate from scratch. For instance, competing with Kaspi in retail would be a losing strategy from the outset.
Therefore, the logical niche for ADCB is corporate and trade banking, servicing companies with a presence in the UAE and Central Asia, and Islamic financing for large projects. Here it has a real competitive advantage: the parent structure is controlled by Mubadala Investment Company PJSC — Abu Dhabi's sovereign investment fund, which is itself an active investor in the region.
WHAT HAPPENS NEXT
Obtaining the permit is only the first step. Ahead lie the formation of the authorised capital, building infrastructure, and obtaining a full universal licence. Then, in all likelihood, a merger with ADCB Islamic Bank will follow, creating the first major bank in Kazakhstan to combine classical and Islamic banking under one roof.