Banking
From The Report: Abu Dhabi 2014
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The UAE’s banking sector has continued to grow in both depth and complexity to become the largest in the region, accounting for 31% of the total volume of the GCC banking sector and about 20% of the gross volume of the Arab banking sector at the close of 2012. The sector’s profitable trend continued into the first half of 2013: aggregate net profit for the period ending June 30, 2013 reached $2.3bn, a 13.4% rise on $2bn in the first half of 2012. Regulatory reform continues to pose a challenge moving into 2014, but the opportunities that are arising from the emirate’s economic expansion are expected to underwrite the ongoing growth of Abu Dhabi’s lenders.
This chapter contains interviews with Sultan bin Nasser Al Suwaidi, Governor, Central Bank of the UAE; and Younis Al Khoori, Vice-Chairman, Al Etihad Credit Bureau (AECB), and Undersecretary, Ministry of Finance.

Articles from this Chapter

Overview

Cool in a crisis: Resilient during global crises, the emirate’s banks are now expanding
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Among the banking sectors in the GCC, that of the UAE has grown to become the largest, and within this dynamic and competitive market the banks headquartered in the nation’s capital have expanded to become some of its most significant players. Over the past year they have demonstrated their resilience to unfavourable global economic conditions through continued profit growth and loan book expansion. They have also successfully adapted to a rapidly evolving regulatory environment, as the nation’s…

Interview

OBG talks to Sultan bin Nasser Al Suwaidi, Governor, Central Bank of the UAE
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Interview:Sultan bin Nasser Al Suwaidi, How is continued deleveraging and financial uncertainty in the eurozone impacting the sector? SULTAN BIN NASSER AL SUWAIDI: European banks’ continued deleveraging has had a limited impact on the UAE financial sector. Foreign banks’ share of total loans in the UAE is less than 20% and has been relatively unchanged for the past few years. Loan growth was 5.8% year-on-year as of the end of June 2013 and has remained broadly in line with GDP growth.…

Interview

OBG talks to Sultan bin Nasser Al Suwaidi, Governor, Central Bank of the UAE
OBG
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Interview:Sultan bin Nasser Al Suwaidi, How is continued deleveraging and financial uncertainty in the eurozone impacting the sector? SULTAN BIN NASSER AL SUWAIDI: European banks’ continued deleveraging has had a limited impact on the UAE financial sector. Foreign banks’ share of total loans in the UAE is less than 20% and has been relatively unchanged for the past few years. Loan growth was 5.8% year-on-year as of the end of June 2013 and has remained broadly in line with GDP growth.…

Interview

Greater due diligence: OBG talks to Younis Al Khoori, Vice-Chairman, Al Etihad Credit Bureau (AECB), and Undersecretary, Ministry of Finance
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Interview:Younis Al Khoori How will comprehensive credit reporting benefit both corporate and retail borrowers? YOUNIS AL KHOORI: The UAE has the largest banking sector and the second-largest economy in the region, and it has a very strong growth pattern. The demand for loans and bookings has heavily increased in recent years, contributing to the growth of the sector. With this demand and growth there is a heightened need for greater transparency. AECB is set to become something akin to an…

Analysis

The top five: The major banks have all been strong performers
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First Gulg Bank (FGB) With assets of Dh182.9bn ($49.7bn) at the close of the first half of 2013, FGB is the third-largest bank in Abu Dhabi and the largest privately owned lender. Established in 1978, the historically retail-focused lender had developed a universal set of services, encompassing the core revenue drivers of wholesale and consumer banking, as well as the incremental revenue streams derived from treasury and global markets and a range of subsidiaries and associate companies. The latter…

Analysis

A culture of lending: Consumer borrowing has grown rapidly, creating both opportunities and challenges
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While the prudent expansion of lending activity is a fundamental principle of banking strategy, and a key indicator of a healthy economy, concerns over an overheating credit environment in the UAE were raised in 2013 by some industry observers. Of particular interest to the local press was a rapid rise in consumer borrowing, with credit cards and car loans bulking up loan books in early 2013, and the growth in customer borrowing in the early part of the year outstripping the total growth seen in…