UAE banks’ assets to grow 8 per cent in 2022: official

RIYADH: Emirati banks’ assets are expected to grow 8 per cent in 2022, the head of the UAE Banks Federation Abdul Aziz Al Ghurair told Al Arabiya.

The UAE’s economy will grow next year by 5 per cent and the return of tourism activity will support the growth of assets to this level, he said.

The UAE economy will reap benefits from the world fair Expo 2020 for about eight years, he said. “Expo 2020 restored trust in UAE’s economy,” he said.

Expo 2020 opened its doors in Dubai this month.

The Central Bank of Emirates’s support of 250 billion dirhams ($68 billion) had a significant impact in mitigating the impact of the Corona pandemic on the economic sector and individuals, and overcoming that phase, Al Ghurair said.

He added that the UAE economy and banks are currently reaping the fruits of the support of the UAE Central Bank.

Al Ghurair revealed that 95 per cent of the UAE banks have refunded the support amounts and have the ability to support the economy and individuals without the need for support from the Central Bank.

The banking sector dealt with doubtful loans during the past two years and in 2021, noting that the levels of allocations for these loans will return to their normal levels next year, between 1.5 and 2 per cent.

The demand for the real estate sector has increased significantly now, after the UAE has proven that it can be relied upon in times of crisis, Al Ghurair said, expecting real estate prices in the country to return to acceptable levels.