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UAE banking sector assets to record up to 10pc growth in 2022: UBF Chairman

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UAE Banks Federation (UBF) Chairman AbdulAziz Al Ghurair has projected that the UAE’s banking sector assets will surge in the range of 8 to 10 percent next year.

He said the banking sector will benefit from the economic revival as the country’s economy will also increase about 5 per cent in 2022.

AbdulAziz Al Ghurair said that the UAE’s economy will reap benefits from Expo 2020 for about nine years with more international investors attracting to the country.

He highlighted that banks are already seeing improvements in key performance matrixes such as asset quality, capitalisation, loans and deposit growth, profitability, loans to deposit ratio, costs, and liquidity.

Al Ghurair predicts that the non-performing loans ratio of the UAE’s banking sector will moderate from the current 8 per cent to 2 per cent in 2022.

Even before the third quarter 2021 results, figures show that the UAE banks are entering a period of healthy growth in assets and profits.

The UBF chairman said that the coronavirus pandemic has already expedited digitalisation, especially in the banking sector as most of the customers have been forced to try digital solutions of their banking problems. It is indeed a good development for banks, customers and all other stakeholders in the economy, he added.

Al Ghurair said that increased digitalisation is helping the banks reduce the number of branches and overall costs while offering a better customer experience.

Meanwhile, the latest data from the Central bank showed the digitalisation has resulted in a decline in the number of bank branches from 534 at the end of first quarter this year to 522 at the end of second quarter. Likewise, the number of bank employees fell by 414 to 32,623 at the end of June 2021.

Al Ghurair said the central bank’s support was timely and substantial but the banking sector in the country is ready for the phasing out of the support under the Targeted Economic Support Scheme (TESS) of the Central Bank of UAE.

As the Central Bank is set for a gradual withdrawal of its direct liquidity support, Al Ghurair said the banking sector no longer needs funding. He said that some 95 per cent of the banks have already surrendered their TESS quotas. He expected a decline in loan impairments over the next few quarters.

UBF Chairman Al Ghurair said the UAE’s healthy banking system is supportive of the economic growth momentum, while banks are also gaining benefit from the underlying strength of the operating environment. He said the post-COVID-19 recovery in the economy is going to benefit all sectors that were negatively impacted during the pandemic.

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AI now keeping track of UAE motorists: Here’s why

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The UAE is stepping up efforts to improve road safety, with authorities increasingly turning to AI (artificial intelligence) to monitor driver behaviour and reduce traffic accidents.

The UAE Ministry of Interior revealed that AI-powered systems are now being used across the country to analyse motorists’ behaviour behind the wheel. The initiative forms part of a broader strategy to tackle human behaviour.

Road safety

Despite ranking among the top countries globally for road quality, the UAE continues to face concerns over traffic-related injuries and fatalities, with reckless driving and unsafe habits cited as leading causes.

Officials say the new AI systems go beyond traditional enforcement. Dedicated digital platforms are being used to identify accident hotspots, allowing authorities to respond with targeted safety measures and improved traffic management.

Training programmes for motorists

Drivers involved in both major and minor accidents are also being closely monitored. Based on their behavioural profiles, they are enrolled in structured training programmes designed to address risky driving patterns and improve overall road discipline.

Brigadier Dr Rashid Sultan Al Khudr, Director General of Legal Affairs at the Ministry of Interior, said AI tools are also being used to assess driver risk levels. This helps authorities develop more focused initiatives and introduce standards aimed at curbing dangerous driving.

By combining high-quality infrastructure with AI-led monitoring and behavioural interventions, officials hope to significantly reduce accidents and create safer roads for all users.

The initiative also aligns with the UAE’s broader vision of building smarter, more sustainable cities, where innovation plays a central role in improving everyday life.

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UAE’s Etihad Rail transports Nissan cars for the first time

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The UAE has marked a significant milestone in its logistics sector, with Etihad Rail successfully transporting its first consignment of Nissan vehicles by rail from Fujairah to Abu Dhabi.

The shipment, carried from the ports of Fujairah to the dry port at the Industrial City of Abu Dhabi (ICAD), represents the first time cars have been transported via the country’s national rail network. The move was carried out in collaboration with Al Masaood Automobiles and Etihad Rail Freight.

Industry leaders say the development signals a major step forward in diversifying rail cargo beyond traditional bulk commodities, expanding into high-value shipments such as finished vehicles. It also highlights the growing role of rail in integrated, end-to-end supply chains across the UAE.

Omar Alsebeyi, CEO of Etihad Rail Freight, described the milestone as a clear demonstration of the network’s capabilities. For the automotive sector, the collaboration marks a first-of-its-kind partnership.

Beyond efficiency gains, the shift to rail freight also supports sustainability goals. Rail transport produces significantly lower emissions compared to road freight, aligning with the UAE’s broader environmental ambitions, including the Net Zero by 2050 Strategic Initiative.

Officials say the milestone reflects the strength of the UAE’s integrated infrastructure ecosystem, where strategic investments and private sector collaboration are driving innovation in logistics and supporting long-term economic growth.

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Dubai Ruler launches world’s largest dates factory to fight child hunger

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Dubai is taking a bold step in the global fight against hunger, with Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announcing the launch of the world’s largest dates factory aimed at feeding millions of malnourished children each year.

The landmark initiative will produce up to 150 million date-fortified food units annually, targeting children suffering from malnutrition in some of the world’s most vulnerable communities.

Announced on Friday, the project is being developed in collaboration with key partners, aligned with a broader humanitarian vision led by Sheikh Mohammed. The factory will transform dates, a staple deeply rooted in the UAE’s heritage, into high-value nutritional products designed to combat hunger at scale.

“The goal is to produce 150 million date-fortified food units annually, dedicated to children suffering from malnutrition,” Sheikh Mohammed said, highlighting the UAE’s commitment to global food security.

He emphasized the cultural and historical significance of dates in the region, noting that palm trees have sustained communities for generations. The new initiative seeks to build on that legacy by repurposing the fruit into a modern solution for one of the world’s most urgent challenges.

The project forms part of a wider humanitarian push by the UAE. Earlier this year, Sheikh Mohammed launched the Edge of Life Ramadan campaign, which aims to help save five million children under the age of five from hunger and malnutrition.

Officials say the initiative also reflects a broader call for collective action, encouraging participation from individuals, institutions, and organisations across the UAE to support vulnerable populations worldwide.

By combining tradition with innovation, the UAE’s latest project signals a growing role in tackling global humanitarian challenges, one that extends far beyond its borders.

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