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The Abu Dhabi National Bank


Founded back in 1968, the Abu Dhabi National Bank (ADNB) has been at the helm of financial control in the UAE. The major intention for the launch of the bank was to give it a platform for services as the central bank, where it presided over the national treasury services on behalf of the government until the year 1975 ( Group, 2007). Even though the national treasury services were short-lived, they gave the bank the platform for rising above the constraints of the competitive global world through enabling it to synthesize the difference between performers and non-performers. In responding to the changing climate of the global world, the bank is a source of definition of the greener products principle for greener markets. In consideration, the higher management fosters its efforts towards research into new trends of production to meet the consumers’ needs that enable it to remain at the helm of monopoly in the financial services in the UAE (Group, 2007). The internal and external analyses of the NBAD form the essence of this paper.


The basis of formation for the NBAD lies back in the year 1968, when it was launched as an aide to the national treasure services. This is derived from the fact that the bank was formed to serve as the central bank until the year 1975, when the central bank took over the mandate. This led to the specialization in lending services to incorporate the trades under the conventional stock ticker that was branded NBDA. The ticker served in the “Abu Dhabi Securities Exchange”, taking over the role of market capitalization through monopoly of financial related issues in the markets within the UAE. The essence of market capitalization has seen the bank rise not only to the echelon of the financial services, but also charitable events within the UAE. This is from the fact that the company has been the corporate sponsor of the sporting events since 2010.

The growth of the NBAD lies in the expansion programs that span from the conventional 80 branches within the jurisdictions of the UAE to the contemporary overseas network systems. The bank opened up as a financial service provider in the UAE with only three shift offices within the areas of providence of security services. The impact of profitability and sound management systems within the company has seen it expand to incorporate services like finance and traveller’s cheques for trade exchange within the international airport of Abu Dhabi. This program saw the bank expand its network branches to include 214 ATMS by the close of the 20th century. Currently, the bank prides its expanse in the overseas markets, in which it harbors various locations that target potential low labor prospects and high market share indices. This includes network stretches to countries like USA and Sudan, where consumers enjoy the rich platform of financial services at affordable costs (Group, 2007).


The bank is both a service and goods provider, in which it serves its consumers through the internet banking systems. For instance, the NbadOnline forum has a leading role in providence of 24 hour accessibility of management accounting systems. This service provider aids consumers to unlimited time transactions of both the internet and the intranet services. In addition, the bank is a corporate provider of lending services to businesses, which include management of cash flow exchange of foreign currencies and transactions, based on the cross-borders within the jurisdiction of the UAE. For instance, the Japanese agents are renowned for implementing the cross-border transactions between the Japanese territory and the UAE, while the “International Banking Division” deals with management of the branch network systems that are found overseas (Group, 2007).

The demand for the goods and services within the company is not elastic. By consideration, the bank is the controller of all the financial transactions within the oil rich centers and deserts. This implies that the goods and services that the bank renders are in linearity with the oil exploration endeavors. This also implies that the goods and services are vital and thus a necessity for the continued growth of both the mining industry and the overseas travel industry. In addition, the company provides substitute products that are essential in the definition of greener products for the warm climatic conditions of the global world. For instance, the company works hand in hand with the “Abu Dhabi Leasing Company” to cater for all the consumer needs amid the constraints of lease finance (Abed, Hellye & Vine, 2006).

Economic Environment

The NBAD is a leading competitor among the financial institutions in the UAE. Addressing its management systems to the back dates when it used to serve as the central bank, the institution has acquired a large market index share, while innovation into new products is the force that maintains its prevalence to the helm of global competition. For instance, the bank not only competes with the viable financial institutions in terms of internet banking services, but has also acquired a form of research into mobile banking. This is a form of banking that is contemporarily the most preferred one amongst the consumer bases, in which the bank prides its mandate of consumer satisfaction (Abed, Hellye, & Vine, 2006).

The innovation into new modes of secure banking is reached through re-investment of the outputs into research that leads to discovery of potential harbors for investment. For instance, the bank is unique in terms of providence of financial services to consumers without viable visa cards applicable for non residents. This makes it the most preferred one among the consumers with varied nationalism. This also makes it the source of definition for monopoly of the market shares through increased sales of IPOs to these nationals. By consideration, in any market industry, where monopoly is a force of acquaintance of profitability, competition is the constant factor for the definition of the lengthened stay at the helm of the market index shares. This is the solemn practice of the NBAD, which competes with the financial institutions like the Abu Dhabi Commercial Bank for maintaining the consumer base (Group, 2007).


From the time of inception in 1968, the trading fund of the NBAD stands at 112.08%, where the profitability accrued from the business ventures is reinvested into expansion. The profitability of the bank in 2005 stood at $925,820, while that of 2006 stood at $789,680 (Group, 2007). This marked had a 13% reduction in annual profitability within this financial year that was attributed to the global economic crisis. With an improved economy and sound performance of the UAE currency in the international currency markets, the profitability within the NBAD has been consistently increasing from the year 2007 ( Group, 2007). The increase is also attributed to the increased loans and advances, which have been consistently generating revenues for the company in terms of interests due. In addition, the advances have increased by a margin of 57%, compared to the time of inception, which is as a result of increased awareness, attained from sound advertisement systems.

Consumer Perception

Being a role model in cost leadership, the bank has acquired a sound understanding mechanism between the consumer perception and the links to profitability. The bank practices cost leadership through setting prices for its current products at a price that is slightly higher than the marked price. This wins the consumer confidence through providing a notion of quality in the products. This also forms the cost price for the product, since it is presumed to be of a higher value than that of the competitors. The essence of cost leadership also elucidates the notion of stability in the market prices for the consumer products. This has helped the company to live within the mandate of affordability of products without compromising the quality. This has also created consumer confidence, leading to increased sales (Group, 2007).

On the other hand, the society perceives the firm as a leading agent in nurturing the talent. This is derived from the fact that the company aids in the promotion of sporting events, since the year 2010. For instance, the bank has been at the helm of corporate sponsorship of the “2010 Abu Dhabi Grand Prix”, which not only provides entertainment to the society but also is a form of nurturing the local talent. This has resulted in sound business-environmental correlations, where the society feels as if there is a form of appreciation from the company for providing a consumer base ( Peck, 1996).


As the NBAD continues to expand through creation of new branches, there is realism in the compliance with the “Sharia service” ( Peck, 1996). This is evident in the introduction of the contributory efforts of services alignment within the bank with the Islamic banking systems. This is also in reaction to the realization of the major goal of acquisition of the larger market index share. The profitability within the company is also at an increase, while research into new modes of production forms the constant for the proportionality of expansion. The mobile banking service is the product of this proportionality, where it acts a as a subsidy to the online banking system within the reach of the UAE.

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