Banking
From The Report: Dubai 2013
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After facing some tough challenges in recent years, Dubai’s banking sector now shows signs of having turned the corner. Stronger regulation and more robust financials are providing a healthier environment for expansion, and significant progress has been made in tackling the legacy of the global financial crisis. In the year ahead banks are likely to remain conservative in their strategies, managing margins carefully in a tight environment. Regulatory changes should help to boost transparency and prevent unbudgeted risks. It is also widely expected that the banking sector will attract more Asian banks, as Chinese lenders are showing particular interest, especially firms with significant investments in Africa. The chapter includes an interview with Rick Pudner, CEO, Emirates NBD.

Articles from this Chapter

Overview

Easy does it: Careful steps will be required, but there are signs of recovery
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After facing some tough challenges in recent years, Dubai’s banking sector now shows many signs of having turned the corner. Stronger regulation and more robust financials are providing a healthier environment for expansion, while significant progress has been made in tackling the legacy of the global financial crisis. A major part of the UAE’s financial universe, the Dubai banking sector remains a major regional and international player, with a key role as a centre for banking in the Middle…

Analysis

Access all areas: Moves are under way to improve the financing options for businesses
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With micro, small and medium-sized enterprises (MSMEs) accounting for such a large share of Dubai’s economy, financing these vital wheels of the emirate’s industrial machine has become an increasingly important part of both bank and government development plans. According to research by government agency Dubai SME, some 95% of the emirate’s businesses fall into the MSME category, with these firms employing 44% of Dubai’s total workforce. The emirate also accounts for around 50% of all…

Analysis

Tightening up: A renewed focus on regulation has followed the global slowdown
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Since the global financial crisis struck Dubai in 2008/09, successive waves of new regulation have been brought in for banking and the financial sector in general. These have been both local and global, as Dubai and the UAE have sought to meet new international best practices and requirements while taking account of their own unique characteristics. These waves are likely to continue, with 2012/13 bringing important new legislative developments. REGULATION: The basic legal framework governing…

Interview

OBG talks to Rick Pudner, CEO, Emirates NBD
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Interview: Rick Pudner How has the cost of funds for Dubai’s lenders changed over the past several years? RICK PUDNER: Following the global credit crisis in 2008 and subsequent economic downturn, access to international capital markets was quite limited and relatively expensive, forcing banks to deleverage by focusing on deposit gathering while concurrently restricting new loan underwriting. This clearly intensified competition for deposits and drove up pricing for time deposits in 2009 and 2010. By…

Analysis

Leading the way: A look at the four main players in a busy industry
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A major part of the banking sector within the UAE, Dubai is also a key player in the wider MENA region. In the first quarter of 2012, Dubai-based Emirates NBD (ENBD) was not only the largest bank by assets in the UAE, but number three in the GCC, after Qatar National Bank and Saudi Arabia’s National Commercial Bank. ENBD shares the Dubai banking world with many other local banks though – both Islamic and conventional. In addition, there are many international lenders, both in Dubai International…