Bank al Etihad to Launch UAE Operations via Strategic ADGM Partnership

Bank al Etihad is expanding into the United Arab Emirates through a strategic partnership with Ethmar International Holding to establish a new bank in the Abu Dhabi Global Market. For fintech professionals, this move signals a significant shift in Levantine banking, as Jordanian institutions increasingly leverage ADGM’s regulatory framework to capture cross-border wealth and institutional flows.

What was announced

The partnership involves Bank al Etihad, Abu Dhabi-based Ethmar International Holding (EIH), and other UAE-based investors. Together, they have signed a Memorandum of Understanding (MoU) to launch a new banking entity within the Abu Dhabi Global Market (ADGM). This new institution is intended to operate under a Category 1 banking license, which allows for a broad range of financial services including deposit-taking and credit provision for regional and international clients.

The entity will focus on serving corporate, institutional, and high-net-worth clients operating outside the UAE mainland. By establishing a presence in ADGM, Bank al Etihad aims to create an integrated platform for cross-border transactions and regional business facilitation. This expansion follows the bank's recent growth trajectory, which includes a 2024 entry into Iraq and a 2025 merger with INVESTBANK. The proposed bank will be subject to the oversight of the Financial Services Regulatory Authority (FSRA) within ADGM. It must also comply with the regulatory requirements of both the United Arab Emirates and the Hashemite Kingdom of Jordan. The launch remains subject to obtaining all necessary official approvals. This move is part of a broader strategy to diversify revenue streams and strengthen connectivity between Jordan, Iraq, and the wider Gulf region.

"This strategic partnership represents a significant milestone in Bank al Etihad's regional growth journey, expanding its footprint beyond Jordan and Iraq and positioning the Bank within one of the world's leading international financial centers."

Official announcement from Bank al Etihad.

The companies involved

Bank al Etihad has been a fixture of the Jordanian financial landscape since 1987. It has evolved into one of the country's leading financial services groups through aggressive regional expansion and consolidation. Key milestones include the 2017 acquisition of a controlling stake in Safwa Islamic Bank and the 2024 expansion into the Iraqi market. In 2025, the group further solidified its position through a merger with INVESTBANK and the acquisition of the Jordanian operations of the Egyptian Arab Land Bank. Today, the group manages approximately JOD 11 billion in total assets and JOD 1 billion in total equity. Ethmar International Holding (EIH) is an Abu Dhabi-based institutional investment group. EIH focuses on building and investing in diversified platforms across various sectors to drive long-term value. The firm acts as a bridge between regional opportunities and international markets, leveraging its position in Abu Dhabi to foster strategic partnerships like the one with Bank al Etihad.

What FF News has reported before

FF News has previously covered Bank al Etihad’s efforts to modernize its digital offerings and security infrastructure. In 2025, the bank collaborated with ecolytiq and Visa to launch a carbon insights tool within its mobile banking app, as detailed in Bank Al Etihad Partners With ecolytiq and Visa to Integrate Carbon Insights Tool Into Mobile Banking App. Prior to this, the bank focused on enhancing its defensive capabilities by selecting NetGuardians to mitigate financial fraud risks, a move reported in NetGuardians Chosen By Jordan’s Bank Al Etihad To Mitigate Financial Fraud Risk. These initiatives highlight the bank's ongoing commitment to integrating advanced fintech solutions into its core operations as it expands its regional footprint.

What this means

This move into ADGM places Bank al Etihad in direct competition with established regional giants and international private banks vying for the Middle East’s growing wealth management and corporate banking sectors. By opting for a Category 1 license, the bank is not merely looking for a representative office but a full-scale operational hub. This puts pressure on other Levantine banks to formalize their presence in the UAE or risk losing their largest corporate clients to institutions that can offer seamless cross-border services. The success of this venture will likely depend on how effectively the bank can navigate the dual regulatory oversight of the FSRA and Jordanian authorities.