Khaberni - The Central Bank of Egypt imposed a record financial penalty of one billion Egyptian pounds (21 million dollars) on First Abu Dhabi Bank Egypt.
In addition to the fine, which is the biggest in the history of the Egyptian banking sector, the Central Bank decided to dismiss the head of Credit Risk at the bank, according to two informed sources who spoke to "Al-Sharq" on condition of anonymity.
One of the sources, according to "Bloomberg", reported that several other banks—including National Bank of Kuwait – Egypt—also faced smaller fines, amounting to about 170 million Egyptian pounds in the case of "National Bank," due to similar violations.
The source noted that further dismissals might affect other leaders in "First Abu Dhabi Bank Egypt" in the upcoming period.
"Beltone Holding" issued a statement via the Egyptian Exchange confirming its strong financial standing and full compliance with laws, noting that "the right of reply is guaranteed for banks" regarding the central bank's decisions.
And "First Abu Dhabi Bank Egypt" stated that it "adheres to all laws and regulations issued by the Central Bank", and is committed to "the highest standards of governance and oversight," but "does not comment on any transactions involving its clients," in line with banking confidentiality policies.
The dismissal of the head of credit risk was described as part of its "strategy for sustainable growth and improving operational efficiency".
In a research note to investors, AHLY Pharos warned that the fine—although not directly imposed on "Beltone"—represents a clear signal of tightened supervision by the central bank, which could:
- increase the difficulty of "Beltone" obtaining new financings in the short term,
- restrict its expansion plans (organic and inorganic) in the Egyptian market.
The note anticipated a decline in "Beltone" stocks by no less than 10%, and advised investors to "reduce their exposure to the stock until the full picture becomes clear".
Indeed, "Beltone" stock fell by 4.15% at 11:38 Cairo time, reaching 3 Egyptian pounds, topping the list of highest trading values on the exchange.
"Beltone" is one of the largest financial institutions in Egypt, incorporating 18 companies working in investment, asset management, securities, and covering underwritings.
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Its loan portfolio reached 22.4 billion Egyptian pounds as of June 30, 2025.
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The company collected 20 billion Egyptian pounds from shareholders through the Egypt Stock Exchange in two stages (the last in July 2023), facing complaints from small shareholders due to delays in the appearance of the stocks, prompting the Financial Regulatory Authority to intervene to ensure their rights.
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In 2022, Chimera Emirates Group acquired 56% of "Beltone" shares for 385 million Egyptian pounds, at a price of 1.485 Egyptian pounds per share, while the stock is currently trading at 3.13 Egyptian pounds.
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This decision comes within the framework of a broader campaign launched by the Central Bank of Egypt to ensure that credit facilities are used for their approved purposes, and to confront any unlawful uses or violations of monetary policies, especially in light of the economic challenges the country is facing.
The most important question remains: Does this step represent the beginning of a wave of correction in the behavior of financial institutions, or will it exacerbate a liquidity crisis in a market already struggling with financing contraction?
First Abu Dhabi Bank Egypt, part of the First Abu Dhabi Bank group, is the third largest foreign bank operating in Egypt, following the merger of the assets of Bank Audi Egypt.
The bank's branches, totaling 72, are spread across various parts of the Arab Republic of Egypt.
First Abu Dhabi Bank is the largest bank in the United Arab Emirates and one of the largest and safest financial institutions in the world.
Its branch network is spread across five continents, through which it offers its international relations, extensive experience, and financial strength to support local, regional, and international companies seeking to manage their businesses locally and globally.
First Abu Dhabi Bank enjoys a Aa3, AA-, and AA- rating from Moody's, Standard and Poor's, and Fitch respectively, making it one of the strongest rated banks in the Middle East and North Africa region.
First Abu Dhabi Bank has been rated the largest and safest bank in the United Arab Emirates and the Middle East region.
