Banks ride steady growth, rising oil

Customer satisfaction, trust levels in country’s banks very high, UBF annual report reveals

The UAE’s banking sector remained strong and robust in 2017 with an uptick in growth on the back of strong economic momentum in the country, according to the 2017 annual report of the UAE Banks Federation (UBF), a professional representative body made up of 50 banks.

The report noted that driven by a diversified economy, higher government spending, and growth in trade, the UAE economy expanded by 1.5 per cent in 2017, reflecting a sustained increase in investments and consumer confidence.

The ongoing rebound in the global economy, a steady recovery in oil prices, an improved fiscal outlook and higher deposits from the government further stimulated the growth in the sector.

“At the UAE Banks Federation, 2017 was a remarkable year for us. Banks were well capitalised and comfortably liquid, reporting a healthy growth in deposits and a moderating growth in credit and improvement on a number of performance metrics,” AbdulAziz Al Ghurair, chairman of the UAE Banks Federation, said in his introductory message to the annual report.

Further diversification

“Going forward, 2018 seems to be an exciting year for the UAE in general and the banking sector in particular. Anticipated higher oil prices, VAT [value-added tax] revenues, further diversification of the economy and the buildup to Expo 2020 [Dubai] will lead to a better government fiscal position, higher investments and spending to further drive the economy. On the back of [an] improved economy, [the] UAE banking sector will have better growth across deposits and credits.”

The 2017 annual report highlights the contributions of the UBF CEO Advisory Council, the UBF’s diversified technical committees as well as member banks towards creating a stable, competitive and innovative banking sector capable of meeting customers’ expectations and contributing to the country’s economic development.