UAE retail banking revenues expected to grow at a compounded annual rate of 6.4% between 2021 – 2026

UAE retail banking revenues expected to grow at a compounded annual rate of 6.4% between 2021 – 2026

- Recovery in oil prices combined with increased interest rates and an increase in tourism are key contributors to a post-pandemic revival, boosting economic growth and consumer spending

- Increased spending on ESG and sustainability is the next frontier for competitive advantage in the sector

Dubai: The United Arab Emirates (UAE) retail banking revenues are expected to grow at a Compound Annual Growth Rate (CAGR) of 6.4% between 2021 to 2026, a steep rise from 0.1% from 2016 to 2021, while GCC economies (UAE, Saudi Arabia, Kuwait, Bahrain, and Qatar) expect to see an 8.8% CAGR within the same period to 2026, according to a new report by Boston Consulting Group (BCG).

The report, titled Global Retail Banking 2022: Sense and Sustainability, also reveals that one-quarter of retail banks surveyed globally report that ESG is a primary focus area for their digital transformation, and another 38% say that ESG is a key criterion in selecting and prioritizing digital transformation initiatives. In addition to ESG, through the five years from 2021 to 2026, payments, mortgages, and deposit products are likely to drive banking revenue growth in the GCC retail banking sector. An accelerated pace of digital payments and e-commerce adoption in the wake of