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UAE banking sector has solid foundations for continued growth

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UAE Central Bank 750

The UAE is one of the seven largest financial centers in the world.

Abdulaziz Al-Ghurair, Chairman of the UAE Banks Federation (UBF), unified representative and voice of UAE banks, said the banking sector in the UAE has solid foundations to continue to grow and meet rapidly changing customer needs, he said at Abu Dhabi Finance Week.

The event was organized by Abu Dhabi Global Market (ADGM) in partnership with the Abu Dhabi Department of Economic Development, with the UAE Banks Federation participating as a strategic partner.

Speaking at the event to more than 500 prominent investors and financial industry experts from 30 countries, he said, “Emirati banks are well capitalized and profitable, which is a prerequisite for long-term strengthening of the stability of the sector under UAE regulation. Conditions. Central Bank of the UAE.”

Abdulaziz Al-Ghurair commended the strategic partnership between the UAE Banks Federation and ADGM, which constitutes an important platform for the exchange of expertise and experience to strengthen the banking and financial sector in the UAE through various initiatives and events.

He also explained that the UAE’s banking sector has made significant progress, with assets growing 12-fold from US$75 billion in 2000 to more than US$900 billion in 2022, and as a share of the UAE’s nominal GDP from 70% in 2000 To more than 250% by 2022, putting the UAE banking sector on par with the growth rate of major global markets.

Today, the UAE is one of the world’s seven financial centers, he said, noting that specialized financial centers, especially Abu Dhabi Global Market and DIFC, have played an important role in developing the financial sector and positioning it as a global financial center role map. At the same time, they have more than 7,000 companies employing more than 44,000 people from different countries.

Abdulaziz Al-Ghurair highlighted the enormous progress the banking industry has made in developing digital solutions to provide customers with the best possible services while building a reliable and safe financial environment, explaining that local banks have invested more than US$1 billion in the past five years to achieve a modern technological infrastructure. They now offer enhanced professional services while improving APIs, cloud computing and digital channels.

Abdulaziz added: “Digital transformation has helped to increase reliance on digital services as more than 95% of all transactions of leading banks have been digitized, which is one of the highest in the world. Services are increasing, with leading banks now providing 90% of services via smartphones, and more than 50% of new bank accounts are opened through digital channels.”

More than 200 bank branches in the country closed, a 30% reduction, reflecting a growing reliance on digital banking. The UAE has two digital-only banks, while three operational banks have launched their own digital banks.

He commended local banks for their contribution in talent development to keep up with the needs of this growing industry, while developing appropriate solutions and innovative use of technology. As such, Emirates Bank has attracted and trained professionals including designers, systems engineers and data specialists to meet the service demands of the digital age. He further added that the sector employs more than 20,000 professionals.

Abdulaziz Al-Ghurair predicted positive and strong growth in the UAE banking sector, predicting that the banking sector will grow faster than the macroeconomic growth rate and that banking revenues, after deducting risk provisions, will reach more than US$25 billion by 2030, up from the previous year A 50% increase in current income establishes a strong financial position.

“The digitization of financial services will further accelerate, technology development budgets will increase to keep pace with this growth, and efficient data management and use will become a competitive advantage. Digitization requires a restructuring of the operating model; therefore, reducing branch networks is the first step Also, the UAE banking sector is expected to attract many international players due to its huge growth opportunities.” The UAE has become a fintech hub in the Middle East and Africa due to the large investments in the sector.

He emphasized that the UAE has all the components needed to strengthen its position as a regional and global financial hub, with the country’s regulations and legislation characterized by innovation and in line with global changes in the sector.

He noted that the UAE Central Bank recently completed the world’s most comprehensive digital currency transaction prototype.



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