UAE Banks See Brighter Future as Economy Gains Momentum

UAE Banks See Brighter Future as Economy Gains Momentum

Credit rating agency Moody’s Investors Service (Moody’s) upgraded its outlook for the United Arab Emirates’ (UAE) banking sector to “positive” from “stable,” citing the country’s robust economic growth projections. This move indicates Moody’s belief that UAE banks are well-positioned to benefit from the improving economic climate. The positive outlook reflects Moody’s expectation of continued non-oil economic expansion in the UAE. The agency forecasts real non-oil Gross Domestic […]

via UAE Banks See Brighter Future as Economy Gains Momentum

Credit rating agency Moody’s Investors Service (Moody’s) upgraded its outlook for the United Arab Emirates’ (UAE) banking sector to “positive” from “stable,” citing the country’s robust economic growth projections. This move indicates Moody’s belief that UAE banks are well-positioned to benefit from the improving economic climate.

The positive outlook reflects Moody’s expectation of continued non-oil economic expansion in the UAE. The agency forecasts real non-oil Gross Domestic Product (GDP) to rise by a solid 4.5% in 2024. This growth is attributed to several factors, including high business confidence and the government’s ongoing structural reforms aimed at boosting the population and attracting foreign investment.

Badis Shubailat, a Moody’s analyst, explained the rationale behind the upgrade. “The positive outlook for the UAE banking system is driven by our