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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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UAE public holiday announced: 3-day weekend coming up on August 28

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Planning your next long weekend? The UAE has confirmed Friday, August 28, as a public holiday for employees in both the public and private sectors.

The holiday commemorates Prophet Muhammad’s (PBUH) birthday, an occasion included among the UAE’s official public holidays. As the date follows the Islamic calendar, the timing changes from year to year.

A three-day break for many residents

With the holiday falling on a Friday, employees who follow a Monday-to-Friday working week can enjoy three days off:

  • Friday, August 28: Public holiday
  • Saturday, August 29: Weekend
  • Sunday, August 30: Weekend

That means residents can make the most of the break with a short trip, a staycation or a relaxed weekend at home.

Another UAE holiday is coming

The next major public holiday on the UAE calendar will be Eid Al Etihad, with celebrations and the official holiday scheduled for December 2 and 3.

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What the UAE’s new vape excise price means for consumers and retailers

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The UAE Ministry of Finance has introduced a new rule that sets a minimum excise price for liquids used in electronic smoking devices.

Beginning September 1, vaping liquids will be subject to a minimum excise price of AED 1 per millilitre.

The ministry confirmed that the existing minimum excise prices for cigarettes, water pipe tobacco (shisha), and other tobacco products will remain unchanged.

According to the ministry, the decision aims to improve tax compliance, respond to developments in the tobacco and vaping industry, and create a more consistent pricing framework across tobacco and electronic smoking products.

The UAE will also continue applying its 100% excise tax on all tobacco products covered under the country’s excise tax regulations.

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Indian Consulate in Dubai explains new passport process after service provider switch

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If you’re planning to renew your Indian passport in the UAE, you may have noticed longer waiting times over the past few weeks. That’s because passport and consular services have moved to a new outsourcing partner, and the Indian Consulate in Dubai says it’s now working to clear the backlog as quickly as possible.

The new Indian Consular Application Centres (ICACs), operated by Alhind Tours and Travels, have replaced the previous service provider and are now handling passport renewals and other consular services across the UAE.

Why are there delays?

According to the Consulate General of India in Dubai, the transition between service providers created a temporary backlog, leading to heavy demand at ICAC centres across the country.

Newly appointed Consul General Dr E. Vishnu Vardhan Reddy said some initial ‘teething problems’ were expected but added that clearing pending applications, particularly Tatkal (fast-track) requests, is now a top priority.

The Consulate and the Indian Embassy in Abu Dhabi together provide consular services to nearly four million Indians living in the UAE.

Who can walk in without an appointment?

To help those with urgent travel needs, the new centres are accepting walk-in applications for genuine emergency cases.

These include:

  • Tatkal passport applications with proof of urgent travel
  • Newborn passport applications
  • Senior citizens
  • Emergency Certificate applications

Applicants must carry documents supporting their request, such as a confirmed flight ticket for travel within the next two or three days.

Only official appointments permitted

The Consulate has also warned applicants not to use unofficial agents offering paid appointment bookings.

Officials said appointments should only be made through the official portal, adding that Alhind’s Dh19 service fee already includes services such as form filling and photography. Applicants should not be paying additional charges for these services.

The Consulate says it is working closely with the new operator to reduce waiting times and improve the overall experience. More digital services are also being introduced to simplify the application process and reduce the need for intermediaries.

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