First Abu Dhabi Bank (FAB) has agreed to sell a 60% stake in its payments arm, Magnati, to Brookfield Business Partners, in a deal valuing the division at $1.15 billion (AED 4.2 billion). FAB will retain a 40% stake and maintain a long-term partnership with Magnati. The proceeds from the sale will fuel the bank's growth and transformation plans. The deal, which is subject to regulatory approval, follows FAB’s carve-out of Magnati in April 2021 as part of its digital transformation strategy to expand its footprint in the payments sector.

The shift towards digital payments has been accelerated by the pandemic, with consumer behaviors increasingly favoring digital over traditional cash and debit transactions. This move also comes as Dubai’s Mashreqbank reportedly considers selling its own payments business, potentially valued at $500 million. Meanwhile, FAB is exploring the acquisition of a controlling stake in Egypt's EFG Hermes, signaling broader ambitions across key emerging markets, including Kenya, Nigeria, and Bangladesh.