UAE retail banking revenues set for steep rise

UAE retail banking revenues set for steep rise

Customers had increased trust in their bank during the Covid crisis than at the start of the pandemic in 2020, according to Boston Consulting Group

In the third quarter, the top 10 UAE banks’ profitability jumped on the back of higher core interest income despite a slowdown in loans and advances growth.

Published: Tue 13 Dec 2022, 5:14 PM

Retail banking revenues in the UAE are expected to grow at a compound annual growth rate of 6.4 per cent until 2026, a steep rise from 0.1 per cent from 2016 to 2021, according to Boston Consulting Group.

The economies of the GCC are also poised to keep a similar growth momentum with an estimated 8.8 per cent CAGR surge till 2026. The growth will be driven by recovery in oil prices combined with increased interest rates and an increase in tourism.

The report noted that customers had increased trust in their bank during the Covid crisis than at the start of the pandemic in 2020.

“Customers want their banks to feel like a ‘good friend’ that they can turn to for honest advice and a ‘school’ where they can obtain financial guidance.

Abdulaziz Al Ghurair, chairman of UAE Banks Federation, forecasted a positive and robust growth of