UAE banking sector pivots to new resilience mechanisms to spur growth

UAE banking sector pivots to new resilience mechanisms to spur growth

The UAE banks have emerged stronger than ever after the economic slump brought about by the pandemic

The UAE banking sector, the most vibrant in the region, enjoyed a promising year against a backdrop of sweeping tax reforms, including UAE Corporate Tax announced this January and Global Minimum Tax announced in 2021. — File photo

Published: Mon 4 Apr 2022, 5:48 PM

The UAE’s financial services sector is poised for growth in 2022 amid sweeping economic and fiscal reforms on the back of improved infrastructure and digital trends.

The banking sector, following a remarkable rebound in 2021, is adopting new resilience mechanisms to counter the effects of the global pandemic, including digitalisation, enhanced regulatory frameworks, corporate governance and risk management strategies, according to analysts at KPMG UAE.

“The UAE banking sector has performed remarkably, despite prevailing financial and economic conditions. We believe banks have emerged stronger than ever after the economic slump brought about by the pandemic,” said Abbas Basrai, partner and head of Financial Services, KPMG Lower Gulf.

“To best serve the interests of all their stakeholders, financial institutions will do well to constantly adapt their operations and compliance functions to keep pace with the maturing regulatory landscape, become early adopters of nascent technologies, and