ADCB Reports Service Disruption Amid Regional Tech Outage Arabian Post

(MENAFN- The Arabian Post)

Abu Dhabi Commercial Bank said on Monday that technical problems were disrupting access to parts of its digital banking platforms, affecting customers using its website and mobile application, as broader technology infrastructure challenges unfolded across the Gulf.

The lender, one of the largest financial institutions in the United Arab Emirates, acknowledged service interruptions and said teams were working to restore full functionality. Customers reported difficulties logging into the mobile app, executing transactions and accessing online banking features during peak hours. The bank did not immediately specify the root cause of the disruption or provide a timeline for complete restoration.

The service outage coincided with operational issues at data centres operated by Amazon Web Services in Bahrain and the United Arab Emirates. AWS, the cloud computing arm of Amazon, faced power and connectivity disruptions following Iranian strikes targeting United States military bases in the Gulf, according to officials familiar with the situation. Those strikes heightened regional security concerns and affected critical infrastructure, including technology facilities reliant on stable power supply and cross-border network connectivity.

It was not immediately clear whether the bank's outage was directly linked to the AWS incident. ADCB has not publicly confirmed its cloud infrastructure partners for specific systems, though many regional banks and financial institutions rely on a mix of on-premise data centres and third-party cloud providers for digital services, payments processing and customer interfaces.

Market analysts said the episode underscores the growing interdependence between financial institutions and cloud infrastructure providers. Over the past decade, banks across the Gulf Cooperation Council have accelerated digital transformation strategies, shifting core banking functions, customer onboarding, analytics and cybersecurity tools to cloud-based environments to improve scalability and reduce costs. This migration has improved efficiency but has also concentrated operational risk in a smaller number of technology providers.

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Regulators in the region have increasingly focused on operational resilience. The Central Bank of the United Arab Emirates has issued guidelines on technology risk management and business continuity planning, requiring banks to maintain contingency systems and conduct regular stress tests to mitigate the impact of outages. Similar frameworks have been introduced by financial authorities in Saudi Arabia, Bahrain and Qatar, reflecting heightened scrutiny of systemic vulnerabilities in the digital financial ecosystem.

Customers of ADCB took to social media platforms to express concern over delayed payments and difficulties accessing funds. Some corporate clients reported temporary interruptions in transaction processing, though there was no indication of data compromise or cybersecurity breach. The bank did not signal any evidence of hacking or malicious intrusion, and the language used in its communication pointed to technical disruption rather than a security incident.

Technology experts noted that power instability and network interruptions at regional data hubs can have cascading effects, particularly when institutions depend on centralised cloud zones for redundancy. AWS operates multiple availability zones within its Middle East region, designed to provide failover capacity in the event of localised outages. However, simultaneous power and connectivity issues can reduce redundancy, depending on the scale and geographic distribution of the disruption.

The broader geopolitical backdrop added to the complexity of the situation. Iranian strikes on United States military installations in the Gulf followed escalating tensions linked to wider regional conflicts. Defence officials in the region confirmed that air defence systems were activated in several areas, and temporary airspace restrictions were implemented in parts of the Gulf. Energy markets reacted with volatility, and aviation authorities issued advisories for certain routes.

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Financial markets in the United Arab Emirates remained operational, and there was no announcement of trading suspensions. Banking sector shares showed limited movement during the trading session, suggesting investors viewed the disruption as operational rather than structural. Analysts said confidence in the resilience of major lenders remains anchored in strong capital buffers and regulatory oversight.

ADCB, listed on the Abu Dhabi Securities Exchange, has positioned itself as a technology-forward institution, investing heavily in digital banking capabilities, artificial intelligence-driven customer service tools and automated lending platforms. Annual reports have highlighted investments in cloud-native architecture and partnerships with global technology firms to modernise infrastructure. Monday's disruption presents a test of those resilience frameworks.

Industry observers point out that concentration risk within global cloud providers has become a policy discussion in several jurisdictions. Financial stability boards in Europe and North America have warned that reliance on a handful of hyperscale providers could amplify systemic risk if outages occur during periods of geopolitical stress. Gulf regulators have been monitoring similar concerns as banks deepen their integration with global technology platforms.

For customers, the immediate impact centred on access rather than solvency or liquidity. ATMs and physical branches continued to operate, according to individuals who visited select locations in Abu Dhabi and Dubai. Card payments at retail outlets appeared largely unaffected, indicating that core payment networks remained functional.

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