Large capital pools, FDI drive UAE banking sector growth

  • Date: 27-Mar-2023
  • Source: Khaleej Times
  • Sector:Financial Markets
  • Country:UAE
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Large capital pools, FDI drive UAE banking sector growth

Banking sector saw total assets of the top 10 banks has increasing by 10.6% in 2022

uae, economy, recovery, fast, central bank, tess, covid,

Published: Mon 27 Mar 2023, 4:45 PM

UAE banks benefit from large pools of capital and high net worth customers on the back of a vibrant economy and a favourable business environment that continue to attract significant amounts of foreign investments, according to analysts at leading global accounting and rating firms.

The banking sector, which has been receiving major fillip from government’s commitment to regulatory reforms, saw total assets of the top 10 banks has increasing by 10.6 per cent in 2022 year-on-year to $898.89 billion driven by strong growth in deposits, loans, and advances, KPMG said in its UAE Banking Perspectives report.

According to the Central Bank of the UAE, the nation’s economy is estimated to have grown by 7.6 per cent in 2022, the highest growth in 11 years, after expanding 3.9 per cent in 2021. In 2023, the country’s economy is projected to grow 3.9 per cent in 2023, according to the regulator. The foreign direct investment flow into the UAE in 2022 was estimated at $22 billion by the Institute of International Finance.

Moody’s in its latest report