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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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Traffic alert: New diversion announced on Sharjah’s Al Khan Road starting Friday

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Sharjah Roads and Transport Authority has announced a temporary traffic diversion on Al Khan Road as part of ongoing road expansion and bridge construction works aimed at improving traffic flow across the emirate.

The diversion will take effect from Friday, with authorities urging motorists to follow approved detour routes and traffic instructions during the construction period.

According to the authority, the works are part of wider infrastructure upgrades designed to reduce congestion and enhance connectivity in one of Sharjah’s busiest traffic corridors.

Drivers have been advised to plan journeys, use alternative routes where possible and comply with traffic safety guidelines to help maintain smooth traffic movement in the area.

The project forms part of Sharjah’s broader transport development strategy focused on upgrading road networks and supporting the emirate’s growing population and mobility needs.

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Dubai announces Dh1.5 billion package to protect jobs and support businesses

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Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has approved a fresh Dh1.5 billion economic support package aimed at protecting jobs, easing pressure on businesses and strengthening Dubai’s economy during a challenging period for the region.

The latest measures bring the total value of Dubai’s recent economic support initiatives to Dh2.5 billion, following an earlier Dh1 billion package introduced earlier this year.

The new package includes 33 initiatives that will be rolled out over the next three to 12 months, targeting key sectors including tourism, hospitality, trade, education and customs services.

One of the biggest beneficiaries is Dubai’s hotel and tourism industry, with several major fee relief measures announced to reduce operating costs.

Hotels across the emirate will be allowed to postpone 100 per cent of government sales fees on rooms as well as food and beverage services for three months. The relief applies to hotels, hotel apartments and holiday homes.

Dubai has also postponed the Tourism Dirham fee, a charge applied to hotel stays for up to 30 consecutive nights, for the same period. Hotels will additionally be exempt from permit, postponement and cancellation fees related to events.

Retailers and commercial businesses are also expected to benefit, with Dubai removing additional charges linked to sales campaigns and promotional offers. The move is likely to encourage more discounts and shopping promotions across the city over the coming months.

The package further includes streamlined procedures for residency permit issuance and renewals, although detailed implementation guidelines are yet to be announced.

Other sectors receiving support include education, customs, transport and aviation. Measures include deferred licence renewal fees for educational institutions, payment deferrals in the transport sector, an 80 per cent reduction in customs fines and a 50 per cent cut in fees for renewing civil aviation permits.

In a statement shared on X, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said the initiatives reinforce Dubai’s economic resilience and competitiveness while strengthening partnerships between the government and private sector.

He added that Dubai remains committed to supporting businesses and residents while continuing to position itself as a leading global economic hub.

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Free parking in Sharjah during Eid Al Adha: What motorists need to know

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Sharjah City Municipality has announced free public parking across the emirate during the first three days of Eid Al Adha as part of a wider citywide operational plan to ensure smooth celebrations and public safety.

The municipality confirmed that parking fees will be waived on the first, second and third days of Eid, except in paid zones marked with blue signboards, which remain operational throughout weekends and public holidays. Smart parking areas in tourist destinations and major commercial districts will also continue to operate around the clock via the Sharjah Digital platform and app.

Inspectors to monitor markets

Also, as part of the Eid readiness campaign, the municipality said 239 inspectors will be deployed across the emirate to monitor markets, public facilities and commercial establishments during the holiday period.

Authorities have also assigned 35 veterinarians to oversee livestock inspections and ensure health and safety standards are maintained at animal markets and slaughterhouses ahead of Eid sacrifices.

The municipality said the measures are part of a broader effort to enhance public services, maintain cleanliness and safety standards, and ensure residents and visitors enjoy a smooth and organised Eid holiday across Sharjah.

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