Banks in the country are in an upswing , with financial institutions posting a strong growth in their earnings during the first half of the year, a top official said.
As the economy has improved and various sectors such as retail, tourism and real estate have shown significant improvements, banks in the UAE, including Mashreq, have experienced 20 per cent growth in the first six months.
“There is generally a good upswing in bank profitability overall in the country. We have outgrown the market because the economy is doing well and the different sectors are doing even better. There’s more international and regional concentration on the emirates as the only hub to do business in the region,” said Abdul Aziz Al Ghurair, CEO of Mashareq and chairman of the UAE Banks Federation.
The banks’ combined assets went up by 8 per cent to reach Dh1.9 trillion during the same period. “That’s a phenomenal growth. I think the banks are doing well and we want the banks to do well because if they do, the economy will also do well and the consumers will enjoy great service in the banking industry,” Al Ghurair told reporters yesterday.
Al Ghurair said the banks will continue to benefit from the general uptrend in economic activity , adding that loan figures, which have already posted a 6 per cent growth, will continue to grow further in the second half of the year.
“This will be driven by activities. There is a lot of activities in the economy, you name it. Yesterday, Dubai’s foreign trade, excluding oil, went up by 16 per cent . That growth will rub off on the banks. People will enjoy part of that growth. Tourists are coming . You try to book a conference room now for the next two months, it’s a nightmare. Real estate is doing well. The construction sector is busy. Retail is seeing good volume,” he explained.