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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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Dubai road tragedy: Indian Consulate mourns victims as Dh1 million support announced

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The Indian Consulate in Dubai has expressed deep sorrow after a fatal road accident on Emirates Road claimed the lives of seven workers, including six Indian nationals and a Sri Lankan citizen, while leaving nine others injured.

Consular officials visited the injured in the hospital and said they are working closely with local authorities to provide assistance to victims and their families. “Our heartfelt condolences and prayers are with the grieving families during this difficult time,” the mission said in a statement.

Dh1 million relief announced for victims

Meanwhile, Dr Shamsheer Vayalil, Abu Dhabi-based entrepreneur, philanthropist, and Chairman and CEO of Burjeel Holdings, has announced a Dh1 million humanitarian recovery programme to support families affected by the fatal Emirates Road crash in Dubai.

The families of each of the seven deceased victims will receive Dh100,000, while Dh180,000 has been allocated to support the medical and recovery needs of the injured survivors.

The package also includes Dh70,000 to cover emergency travel and accommodation expenses for family members and Dh50,000 dedicated to supporting the education of children from the affected families.

What caused the crash?

According to Dubai Police, preliminary investigations indicate the truck had come to a sudden stop on Emirates Road following a technical malfunction.

Authorities said the minibus driver failed to maintain a safe distance and was unable to avoid the stranded vehicle, resulting in a high-impact rear-end collision.

The workers, all employed by a technical services company, were returning to their accommodation in Sharjah after completing work at a construction site in Dubai when the minibus they were travelling in collided with the truck in the middle of Emirates Road near the Dubai-Sharjah border.

Company sources said the minibus was carrying 17 people, including the driver. The seven workers who died were seated on the right side of the vehicle, which absorbed the full force of the impact.

Of the nine injured, five have since been discharged from the hospital, while four remain under medical care, including three Indian nationals and one Nepali worker.

Identification process underway

Authorities are continuing efforts to formally identify all victims, with company sources saying the process has been complicated by the severity of the injuries sustained in the crash.

Dubai Police warning

Following the accident, Dubai Police renewed warnings about the dangers of leaving broken-down vehicles in the middle of the road.

Motorists experiencing a breakdown are urged to:

  • Activate hazard warning lights immediately
  • Place a warning triangle at a safe distance
  • Move passengers away from the vehicle
  • Contact the police without delay

Police noted that stopping a vehicle on the roadway due to a breakdown, tyre failure, or fuel shortage is a traffic offence under UAE law, carrying a Dh1,000 fine and six black points.


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What El Nino means for the UAE: Hotter summer, more humidity and rainfall in coming months

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The UAE could experience hotter-than-normal and wetter-than-normal weather in the coming months as El Niño conditions strengthen across the tropical Pacific Ocean, according to the National Centre of Meteorology (NCM).

In its latest seasonal outlook, the NCM said there is a 98 per cent probability of El Nino conditions continuing between July and November 2026, with temperatures and rainfall across the UAE expected to range from near-average to above-average levels.

The forecast is based on conditions in the Nino 3.4 region of the tropical Pacific Ocean, a key climate indicator used by meteorologists worldwide. The latest sea surface temperature anomaly in the region is 0.5°C above normal, officially placing it within El Nino territory.

What is El Nino?

El Nino is a natural climate pattern caused by unusually warm ocean temperatures in the central and eastern Pacific. Although it occurs thousands of kilometres away, it can influence weather systems across the globe, including the UAE and other countries in the region.

Historically, El Nino events have been associated with higher temperatures, increased humidity, heavier rainfall in some regions, and more extreme weather patterns worldwide.

What could it mean for the UAE?

While the UAE is not among the regions most severely impacted by El Nino, forecasters say residents could see:

  • Higher-than-normal temperatures
  • Increased humidity levels
  • Greater chances of rainfall compared to seasonal averages
  • More variable weather patterns during the second half of the year

The NCM stressed that climate conditions are continuously monitored and forecasts will be updated monthly based on the latest international weather models and observations.

For now, residents should prepare for a potentially hotter and more humid summer as the climate phenomenon strengthens.

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Pests, expired food, poor hygiene: Why 69 Abu Dhabi restaurants and food shops were closed

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Abu Dhabi authorities have closed 69 food establishments since last year after inspectors uncovered serious food safety violations, including pest infestations, expired products and poor hygiene standards.

The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) said 55 businesses were shut down in 2025, while another 14 have been closed so far in 2026 after repeatedly failing to comply with food safety requirements.

Why were they closed?

Officials said the most common violations included:

  • Selling expired food products
  • Insects and pests in food preparation areas
  • Poor hygiene practices
  • Improper storage of perishable food
  • Failure to meet mandatory food safety requirements

Authorities stressed that closure is only used as a last resort after businesses fail to respond to warnings and corrective notices. The crackdown comes as consumers continue to report food safety concerns across the emirate.

What happens next?

Closed establishments are only allowed to reopen once inspectors confirm all violations have been addressed and food safety standards are fully met.

The authority said regular inspections and surprise visits will continue across restaurants, cafeterias, supermarkets and food outlets to help protect public health.

Officials also encouraged residents to report suspected violations and check food safety ratings displayed under the emirate’s Zadna Assessment programme before dining or shopping.

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