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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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Etihad Rail announces official launch date for passenger services

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The UAE’s national railway developer, Etihad Rail, has announced that the introductory operational phase of its long-awaited passenger rail service between Abu Dhabi and Fujairah will begin on 30 June, reducing travel time between the two emirates to just one hour and 45 minutes.

Passengers will be able to book tickets from 23 June through the Etihad Rail website and mobile application. Fares on the Abu Dhabi–Fujairah route will start from AED55 for Comfort Class and AED120 for Premium Class.

The passenger rail fleet comprises 13 trains, each capable of carrying up to 400 passengers.

The network’s expansion will continue in phases, with Dubai Train Station and Al Dhaid Train Station scheduled to open on 30 September. Stations in Al Dhafra will follow on 30 December, while the route will be fully completed with the opening of Sharjah Train Station on 30 March 2027.

The announcement came as the Mohamed bin Zayed City Passenger Train Station in Abu Dhabi was inaugurated by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.

During a tour of the station, Sheikh Khaled reviewed its facilities, operational readiness and infrastructure.

He said the passenger rail project reflects the UAE’s ambition to create a fully integrated transport network, improving connectivity between emirates while supporting economic growth, tourism and urban development.

Etihad Rail said studies would also be carried out to assess the feasibility of extending passenger rail services to additional emirates in the future.

The launch marks a significant milestone in the UAE’s transport infrastructure strategy, with the network designed to connect major population centres, economic hubs and tourist destinations across the country.

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See why Keir Starmer is resigning as UK Prime Minister

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British Prime Minister Keir Starmer announced on Monday that he will step down as leader of the governing Labour Party and leave office within weeks, less than two years after leading Labour to a landslide election victory.

Starmer said he would remain as caretaker prime minister until Labour selects a new leader.

Click the link below to hear Keir Starmer’s resignation speech:

His departure follows mounting pressure within the party and comes days after Andy Burnham secured a key parliamentary victory, positioning himself as a potential challenger for the party leadership.

Speaking outside 10 Downing Street, an emotional Starmer said he had accepted the view of Labour lawmakers that the party needed new leadership ahead of the next general election.

Starmer’s popularity has fallen sharply since Labour’s decisive victory in July 2024, with critics pointing to sluggish economic growth, cost-of-living pressures and declining public support.

Burnham is now seen as a leading contender to succeed Starmer, although former health secretary Wes Streeting has also indicated he could enter a leadership contest.

Starmer leaves office after a turbulent period marked by domestic challenges but also international recognition for his support of Ukraine and efforts to navigate global crises.

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Dubai sets new rules for public behaviour, celebrations in push to become world’s most civilised city

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Dubai is preparing to introduce official guidelines on public behaviour and celebrations as part of a broader initiative to strengthen its position as the world’s most civilised city.

The announcement was made during the fifth meeting of the Dubai Civility Committee, chaired by Mohammad Abdullah Al Gergawi, Chairman of The Executive Office and Chairman of the Committee.

Among the key initiatives unveiled were the Dubai Civility Guidebook, which will provide a shared framework for conduct in public spaces, and Guidelines for Celebrating Different Occasions, aimed at ensuring that celebrations reflect the values, responsibilities and cultural identity of Dubai’s diverse community.

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Officials said the initiative goes beyond appearances, positioning civility as a comprehensive ecosystem that enhances quality of life, public behaviour, urban aesthetics and the overall experience of residents and visitors.

The committee also reviewed plans for an integrated lighting strategy designed to strengthen Dubai’s visual identity and create greater harmony across the cityscape. In addition, members discussed a comprehensive assessment framework to help establish standards for what Dubai describes as the world’s most civilised urban environment.

Al Gergawi said the emirate has already built a distinctive global model of civility under the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, with people and quality of life remaining at the centre of development efforts.

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