According to a recent report by the Dubai Chamber of Commerce and Industry (DCCI), the profitability of UAE banks exceeded that of its US-based counterparts in the last five years.
The finding was pleasing for many in the UAE in that once the free trade agreement (FTA) between the two countries goes into effect, the UAE banking sector will be an attractive opportunity for foreign investment.
Additionally, the report recommended that UAE banks set their standards in line with international banking institutions and adopt international banking practices.
Consumers will also benefit from the FTA, as they will have access to lower-cost, higher quality banking service.
The UAE market, according to <i>Gulf News</i>, has experienced high rates of return on assets on a consistent basis, as well as on equity and non-performing loans, which US banks will be able to exploit with its advanced management techniques.
The number of banks in the UAE currently stands at 46, while the banking sector is one of the strongest in the country.
