Chairman of UAE Banks Federation (UBF), Abdul Aziz Al Ghurair on Sunday said that the strong Q2 financial results of the UAE banks was an indication that the banking industry is back on the growth path following the decline in Covid-19 pandemic. He expressed hope that the UAE banks will maintain their growth momentum in the second half of the year, driven by improvements in operating conditions, cost efficiency, and credit demand.
“CBUAE’s timely and integrated measures to support the financial system helped shield the UAE economy from the pandemic’s impact and accelerated post-COVID recovery,” Al Ghurair said in a press conference on Sunday adding that the UAE dedicated a support package reaching AED 400 billion, of which the CBUAE gave banks total relief package that exceeded AED 250 billion.
“In particular, the AED 100 billion Zero Cost Facility benefited both individuals and businesses and facilitated liquidity management for banks through collateralised funding at zero cost,” Al Ghurair added.
Reaffirming the banking sector’s commitment to Emiratisation and the “Projects of the 50” initiative, Al Ghurair said that the UBF will take on an enhanced role in facilitating skill development and employment opportunities for UAE nationals.
“We believe in investing in Emirati population, who are the ones that will drive the next stage of our country’s growth and economic transformation,” the UBF chief said. “In the long term, our focus goes beyond just creating job opportunities for Emiratis and extends to providing them with the resources and training they need to become financial sector’s leaders of tomorrow, so they find themselves able and prepared to shape the future of UAE economy.”
Al Ghurair also spoke at length about the efforts made by UBF and the Central Bank of the UAE (CBUAE) to tackle financial crime compliance, the effect of UAE’s new residency guidelines on the banking sector, as well as the latest updates on key UBF initiatives.
The UBF Chairman observed that demand for loans had gone up in the lead-up to Expo 2020 Dubai, which he identified as a key factor driving post-COVID recovery of UAE banking sector and the country’s economy more generally. He expressed optimism that many companies visiting the UAE for Expo 2020 may transfer part of their business activities to the UAE and start new investments here, resulting in new business for banks.
Al Ghurair also praised the UAE’s new visa guidelines, observing that “the decision to liberalise residency guidelines is a landmark step that will stimulate the UAE’s economy by attracting visitors and investment.”