IHC acquires majority stake in First Women Bank, strengthening UAE–Pakistan economic partnership
In a landmark deal underlining the growing economic partnership between the United Arab Emirates and Pakistan, Abu Dhabi-based investment conglomerate IHC has announced the acquisition of a majority stake in Pakistan’s public-sector bank First Women Bank Limited (FWBL).
Transaction overview
The acquisition follows a privatisation process carried out under Pakistan’s Inter-Governmental Commercial Transactions Act of 2022, marking the first bank-privatisation in the country conducted under a government-to-government (G2G) framework.
FWBL—established in 1989 and operating nationwide through 42 branches—serves retail, SME and corporate clients across Pakistan.
While IHC has not disclosed the full purchase price, Pakistani sources estimate the government’s stake valued around US$14.6 million (≈ Rs4.1 billion).
Strategic implications
For IHC, the investment signals confidence in Pakistan’s financial sector and reflects a broader strategy of deepening cross-border economic links within the Gulf-South Asia corridor. As IHC’s CEO, Syed Basar Shueb, said: “Our investment reflects IHC’s confidence in Pakistan’s financial potential and our shared vision for long-term economic growth.”
On Pakistan’s side, the deal is hailed as a milestone for its privatisation drive and reform agenda, with Prime Minister Muhammad Shehbaz Sharif describing it as “the first drop of rain” in a broader effort to ramp up foreign direct investment and strengthen economic ties with the UAE.
Planned bank modernisation & value creation
Post-acquisition, IHC has committed to:
- Ensuring that FWBL meets the minimum capital requirement as set by the Pakistan banking regulator, thereby strengthening its capital base and enabling expansion of operations.Upgrading core banking infrastructure, automating processes, integrating digital channels and deploying advanced analytics and AI-driven decision-making to deliver faster, smarter banking services.
- Investing in talent development, capacity building and a performance-driven culture to support the transformation from a legacy bank to a modern, inclusive financial institution.
- Rebranding the bank to better reflect its expanded mandate and to signal its modern-ised identity.
Broader economic & regional impact
The deal is significant on several levels:
- It deepens UAE-Pakistan economic integration by bridging capital and expertise from Abu Dhabi with Pakistan’s banking reform agenda.
- It strengthens the UAE’s footprint in Pakistan’s financial-services sector—an area of strategic interest as both countries seek to diversify economic ties beyond traditional trade flows.
- It may serve as a blueprint for future privatisations and foreign-investment entry into Pakistan’s banking industry under the new inter-governmental transaction framework.
- For local Pakistani stakeholders, the transformation promises improved access to financial services, technology-enabled banking, and expanded outreach for women-led enterprises (given FWBL’s original mission of promoting women’s financial inclusion).
Next steps to watch
- The pace at which IHC injects capital into FWBL and completes regulatory clearances under Pakistan’s banking-regulation framework.
- The rollout of the bank’s modernisation plan (digital channels, AI-driven services, branch expansion) and how quickly service improvements are visible.
- How the bank’s re-branding and strategic repositioning impact its market share, customer base and financial results.
- Additional UAE-Pakistan investment agreements, particularly in sectors such as fintech, infrastructure and renewable energy—this deal could catalyse broader bilateral economic activity.
