Banking
From The Report: Abu Dhabi 2017
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Despite undergoing a profitability squeeze in 2016, Abu Dhabi’s banking sector nonetheless demonstrated its ability to expand its asset base during a period of difficult economic conditions. A recovery in deposit growth means that liquidity concerns have abated, while the stabilisation of oil prices and continued expansion of the non-oil economy brought cheer at the outset of 2017. The sector also appears to be on the brink of a long-anticipated phase of consolidation, in which a number of its biggest names are contemplating joining forces and reshaping the local market.

This chapter contains an interview with Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE.

Articles from this Chapter

Overview

Looking up: Cause for optimism in 2017 with consolidation on the cards
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Despite undergoing a profitability squeeze in 2016, Abu Dhabi’s banking sector nonetheless demonstrated its ability to expand its asset base during a period of difficult economic conditions. A recovery in deposit growth means that liquidity concerns have abated, while the stabilisation of oil prices and continued expansion of the non-oil economy brought cheer at the outset of 2017. The sector also appears to be on the brink of a long-anticipated phase of consolidation, in which a number…

Interview

A vigilant eye: Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE, on mitigating external risk
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Interview: Khalifa Mohammed Al Kindi How does the dirham’s fixed peg to the US dollar affect UAE monetary policy? KHALIFA MOHAMMED AL KINDI: The recent wave of dollar appreciation – which is likely to continue with the direction of monetary policy in the US – has forced an appreciation trend of the dirham relative to major trading partners. This has been beneficial in stemming inflationary pressures by reducing the cost of imported goods for consumption and production. In this regard, our…

Analysis

Stronger together: The merger of two of the emirate’s biggest banks will create a global giant
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After years of speculation as to the possibility of mergers in the UAE’s crowded banking sector, details emerged in 2016 of a deal of historic proportions. It was announced in July that Abu Dhabi’s flagship banking institution, National Bank of Abu Dhabi (NBAD), would join forces with First Gulf Bank (FGB). The combining of the two banks has been described by the participants as a “merger of equals”, with the name chosen for the new bank to be First Abu Dhabi Bank (FAB). According…

Analysis

Going for broke: The UAE is set to introduce a much-needed new insolvency framework
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In October 2016 Sheikh Khalifa bin Zayed Al Nahyan, president of the UAE and ruler of Abu Dhabi, issued a new federal banking law by decree, thereby delivering one of the most keenly anticipated pieces of legislation in recent years. When fully implemented in 2017, the law will address a weak spot in the business environment which has presented a challenge for decades. The first attempt by the UAE to establish a viable insolvency framework came in 1993 with the publication of Federal Law…