Financial Services
From The Report: Ras Al Khaimah 2012
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Despite the lingering effects of the 2008-09 international economic downturn and the more recent political unrest in the region, Ras Al Khaimah’s financial services sector is expected to grow substantially, fuelled by steady expansion in retail banking, Islamic financial services (IFS) and the insurance segment. Indeed, annual deposit growth at UAE banks reached a high of 16% in April 2011. However, financial institutions face a host of challenges; perhaps most notably, the real estate and construction sectors continue to face difficulty in terms of obtaining loans from banks. Local banks are under pressure from the government and central bank to increase lending further, in an effort to boost overall economic growth. Despite these issues, RAK has received consistently high ratings from two of the most prominent credit ratings agencies, thanks to its continuing development, social and political stability, and membership in the UAE.

Articles from this Chapter

Overview

Ramping up: Solid fundamentals underpin expansion
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Despite the lingering effects of the 2008-09 international economic downturn and the more recent political unrest in the region, Ras Al Khaimah’s financial services sector is expected to grow substantially, fuelled by steady expansion in retail banking, Islamic financial services (IFS) and the insurance segment, among other areas. Local banks and other financial institutions – which have seen revenues rise in recent years as a result of cautious lending practices and careful state oversight…

Analysis

Top banks: A look at the leading local financial institutions
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With two locally headquartered banks and a substantial number of institutions from elsewhere in the UAE and further afield, Ras Al Khaimah’s banking sector is very competitive. The National Bank of RAK (RAKBANK) and Commercial Bank International (CBI) have rolled out a handful of new products and services in recent years, focusing on small and medium-sized enterprises (SMEs) and retail banking. Additionally, RAKBANK is expected to launch Islamic banking and financial products before the end…

Analysis

Building new businesses: Financing for SMEs is becoming easier to come by
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As Ras Al Khaimah’s economy has developed over the past decade, the emirate has built a reputation as a regional centre for small and medium-sized enterprises (SMEs). In 2009, SMEs accounted for 85-95% of all economic activity in the UAE, according to a report released by the Abu Dhabi Council for Economic Development (ADCED). In RAK, the percentage is likely even higher. Since the turn of the century, the local government has worked to position the emirate as an attractive destination for…