The UAE’s economy increased by 8.2 percent in the first quarter of the year 2022. With the OPEC+ agreement, there has been an increase in oil production, with hydrocarbon GDP rising by 13% annually. A strong rise was observed in the non-oil sector with 6 percent growth as the country was benefited by the ease in travel restrictions.
The World Expo activities and the Fifa World Cup which is scheduled to take place in Qatar in the fourth quarter are used by CBUAE to emphasize GDP growths. The UAE banking sector is the largest in the Arab world with 1.3 times assets to that of its GDP.
With 23 domestic banks and 28 foreign banks, the central bank of the UAE serves as the main financial regulatory body. Five of the largest banks in the nation own 60% of the sector’s assets. The four main categories of banks are commercial, industrial, merchant, and Islamic.
Top banks in the UAE are First Abu Dhabi Bank with total assets worth AED 940.75 Billion, Emirates NBD worth assets AED 695.06, Abu Dhabi Commercial Bank with total of AED 395.82 Billion assets, First Gulf Bank with total assets amounted to US$ 66 Billion, Dubai Islamic Bank with total assets worth AED 291.71 Billion and Mashreq Bank with AED 162.25 Billion worth assets.
With a total value of 2.61 trillion dirhams, the banking sector assets of the UAE exceeded those of all other Gulf Cooperation nations. The banking industry in the UAE is well known for providing top-notch customer service is currently becoming more globally diversified. Recent analyses of the banking industry in the UAE that looked at its resources, personnel, interest rates, and remuneration show that it has been steadily expanding.
The present objectives of the banking sector are to continue expansion, draw in more internationally renowned banks while enhancing the standing of domestic institutions, ensure the stability of the financial system, and establish strong risk departments. The UAE’s stable banking sector growth contributes to the country’s reputation both domestically and abroad.
Banks are quickly automating operations to provide seamless customer service in a virtual environment by utilizing digital transformation strategies like blockchain, artificial intelligence, and machine learning. Banks are expected by stakeholders to contribute to efforts aimed at a more just and sustainable future. As a result, environmental, social, and governance policy evaluation is receiving more attention from international regulators.
In addition to reporting the bank’s first-ever net profit of AED 5.1 billion, FAB also achieved a net gain of AED 2.8 billion from the sale of the majority stake in payments company Magnati. Operational income and earnings per share for the quarter totaled 4.5 billion AED and 1.84 AED, respectively, in addition to the net profit.
Speaking of future plans and initiatives, FAB wants to increase its presence in certain new markets. As the UAE continues to be one of Iraq’s most significant economic partners, the Shanghai branch, which opened a representative office in March, served as a strategic addition to the country’s geographic reach.
Emirates NBD in Dubai reported a net profit of Dh2.7 billion for the first quarter of 2022, up 18% year over year and 36% sequentially.
The increase was due to Q1 2022 setting records for client transactions, deposit growth, and retail lending. Due to a better loan mix and lower deposit rates, total income increased by 3% on an annual basis to Dhs6.4 billion. Additionally, the bank has a 25% market share for debit and credit card transactions in the UAE. The GCC’s 2022 GDP growth predictions were updated by Emirates NBD Research to reflect anticipated increases in oil and gas output.
Emirates Development Bank plans on contributing $520m to the UAE’s GDP. Dr.Sultan Al Jaber, Minister of Industry and Advanced Technology and EDB board chairman underlines the bank’s new strategy and economic contribution, “not just to the UAE’s industrial sector, but also to the nation’s economic diversification, global competitiveness and long-term, sustainable economic growth”. The bank’s new strategy was introduced to aid in the industrial advancement of the United Arab Emirates, speed up the use of cutting-edge technology, and fosters the expansion of SMEs there. It focuses on how big businesses and SMEs are growing and developing in five important industries, including manufacturing, cutting-edge technology, infrastructure, health care, and food security.
