UAE Banking Sector Demonstrates Resilience Amid Global Challenges

Jamal Saleh, Director-General of the UAE Banks Federation (UBF), has underscored the robustness of the UAE banking sector in the face of global challenges.

Saleh attributed this success to the effective strategies implemented by the Central Bank of the UAE (CBUAE), establishing frameworks for sustained sector growth.

Speaking at a round-table held yesterday, Saleh highlighted the CBUAE's commitment to enforcing strong regulations, safeguarding the banking sector's integrity against challenges faced by major global banks. Expressing confidence in the sector's continued achievements, Saleh revealed a remarkable 1,200% growth over the past two decades, signalling a twelvefold increase.

Under the supervision of the CBUAE, the national banking sector maintained impressive rates for capital efficiency, allocations, and reserves, ensuring adherence to high governance, transparency, and risk management standards.

Saleh also revealed that customer confidence in the Emirati banking sector is on the upswing, citing an 84% customer confidence rate in 2022, according to the UBF's annual confidence index survey.

Responding to inquiries about expectations for interest rates in 2024, Saleh commented,

“The US Federal Reserve is anticipated to adjust interest rates three or four times this year, but the flexibility of the local banking sector positions it to adapt seamlessly to both low and high-interest rate scenarios.”

Emphasizing the UBF's commitment to a secure and seamless banking environment, Saleh affirmed the adherence to global standards in transparency, governance, and compliance. Recognized for innovation and technology utilization, the Emirati banking sector operates under central bank supervision, ensuring it stays abreast of technological advancements.

News Source: Emirates News Agency