The UAE Banks Federation (UBF) hosted its Annual Media Briefing, providing a comprehensive overview of the evolving trends in the banking landscape and key achievements of the past year. The event highlighted significant advancements, achievements, and emerging challenges in the UAE banking sector.
Jamal Saleh, Director General of UAE Banks Federation, Highlights the Resilience and Growth of the UAE Banking Sector
According to WAM, Jamal Saleh, the Director General of the UAE Banks Federation (UBF), emphasized the robustness of the United Arab Emirates banking sector despite global challenges. Saleh commended the success of the Central Bank’s (CBUAE) strategies and policies in establishing frameworks and controls, ensuring sustainable growth for the sector.
Speaking at a round table event, Saleh stated, “The strong controls set by the Central Bank have safeguarded the sector from the challenges faced by major international banks in recent years.”
He continued, “Entering the new year, we have confidence in the banking sector’s ability to continue its achievements and strengthen its regional and global leadership. Over the past two decades, the sector has achieved remarkable growth, increasing by 1200%, a testament to its resilience and adaptability.”
Saleh highlighted the national banking sector’s success in maintaining high levels of capital efficiency, provisions, and reserves, under the direct supervision of the Central Bank. This oversight ensures adherence to the highest standards of governance, transparency, and risk management.
Referring to customer confidence, Saleh noted that national banks recorded an impressive 84% customer confidence rate in 2022, as per the annual confidence index survey conducted by the Federation of Banks.
Adapting to Market Dynamics: Jamal Saleh Addresses Interest Rate Outlook and UAE Banking Sector’s Commitment to Innovation and Technological Advancements
When asked about expectations for interest rates in 2024, Saleh mentioned, “The US Federal Reserve is expected to adjust interest rates three or four times this year. However, the flexibility of the local banking sector allows it to adapt to interest rate changes, whether low or high.”
Saleh underscored UBF’s commitment to establishing a safe and efficient banking environment, aligning with international standards in transparency, governance, and compliance with local and international laws. The focus is on developing a competitive business system and providing the best services and products to customers.
He stated, “The UAE banking sector is one of the most innovative, advanced, and tech-friendly, working under the direct supervision of the Central Bank. We are committed to developing policies and frameworks to keep pace with technological advancements, ensuring a safe and reliable environment for customers.”
Saleh stressed the importance of protecting digital infrastructure, enhancing the security of payment solutions, and keeping pace with rapid technological developments. UBF is actively implementing initiatives to combat fraud, protect financial systems, and raise awareness among customers about fraud prevention.
Highlighting legislative advancements, Saleh mentioned the impact of the Commercial Transactions Law, a significant step for Islamic financial and banking services, reinforcing the UAE’s position as a global financial center.
Regarding the corporate tax system, Saleh commended its advanced nature, based on research, best practices, adherence to standards, and extensive consultations with authorities and companies. He reiterated UBF’s commitment to ensuring member banks comply with local and international legislation, contributing to a safe and smooth banking experience.
Simultaneously, the UAE Funds Transfer System (UAEFTS) reported a significant surge, with transactions totalling approximately Dhs15.4 trillion during the first 11 months of 2023, according to recent statistics from the Central Bank of the UAE.
Fortifying Financial Resilience: Insights from the UBF Annual Media Briefing on Compliance, Risk Management, and Cybersecurity Initiatives
Discussed during the UAE Banks Federation Annual Media Briefing, the UAE banking sector showcased its exceptional prowess in compliance and risk management, marked by the adoption of a robust Regulatory Framework overseen by the Central Bank.
With a proactive approach, banks in the UAE leverage advanced technology and data analytics to identify, assess, and mitigate potential risks, ensuring the resilience and sustainability of the financial system.
The briefing highlighted ongoing initiatives aimed at promoting awareness of fraud and bolstering cybersecurity measures, including the hosting of the largest cyber wargaming event in collaboration with the UAE Cyber Security Council. These strategic discussions underscore the sector’s commitment to maintaining the highest standards in security and risk management, reinforcing its role as a stalwart in the dynamic financial landscape.
