Disclosure on ADX website implies ADIB opening FOL to 25%. ADIB is amending its Articles of Association, which could pave way for foreigners to invest in the stock. The draft needs to be approved by shareholders on 21 April and may require approval from local authorities. While this could trigger short-term interest in the stock, ADIB’s investment case is not compelling in our view. While it offers a liquid balance sheet (LDR: ADIB - 83%; sector - 94%), its capitalisation is relatively stretched (CET1 ratio of 9.3%), its Egyptian associate ADIB Egypt is likely to be an overhang on profitability in the near term (devaluation of EGP) and its relatively large exposure to retail (c55% of loan book) and SME exposure (4% of loans) pose credit quality risk. ADIB trades at 2016e P/E of 9.9x and P/B of 1.5x and we expect it to generate c16% ROE. We reiterate our Neutral rating on ADIB. (View full report) (Shabbir Malik, Mohamed Al Hajj, Murad Ansari, ADX)