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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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Will UAE petrol prices rise in August? Here’s what we know

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UAE motorists won’t have long to wait to find out whether fuel prices will increase in August, with the Fuel Price Committee set to announce the new rates on Thursday, July 31.

The revised petrol and diesel prices will take effect from August 1.

Will fuel prices go up?

After a welcome price cut in July, the outlook for August is less certain.

Global oil prices initially fell below $70 a barrel earlier this month, raising hopes of another reduction. However, prices have since rebounded sharply, clouding the picture for motorists.

Brent crude briefly climbed above $100 a barrel, while US benchmark WTI rose to nearly us$92. Abu Dhabi’s Murban crude also surged past us$105, reflecting renewed strength in global energy markets.

Because UAE fuel prices are based on average international oil prices over the month, the late-July rally could limit or even reverse last month’s cuts.

Current UAE fuel prices

Motorists are currently paying:

  • Super 98: Dh3.40 per litre
  • Special 95: Dh3.29 per litre
  • E-Plus 91: Dh3.21 per litre
  • Diesel: Dh3.60 per litre

These rates were introduced in July after global oil prices eased earlier in the summer.

How UAE fuel prices are set

The UAE reviews petrol and diesel prices every month based on average global crude oil and refined fuel prices.

The August rates will be announced on July 31 through official government channels and will come into effect the following day.

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UAE traffic fine: Why leaving your engine idling can cost you Dh500

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Abu Dhabi Police are urging motorists to switch off their engines and take their keys whenever leaving their vehicles, warning that even brief stops can increase the risk of theft, fires and other safety hazards.

The advisory applies to drivers stopping at shops, petrol stations, ATMs or mosques, where some motorists continue to leave vehicles unattended with the engine running.

Safety risks

Police said leaving a running vehicle unattended creates an opportunity for theft and could also lead to mechanical problems or fire-related incidents.

Motorists were also reminded never to leave children, especially infants, inside a running vehicle, describing the practice as a serious threat to their safety.

Traffic laws

Abu Dhabi Police also highlighted that UAE traffic laws prohibit leaving an unattended vehicle with its engine running.

Drivers who fail to comply with traffic rules and official instructions can face a Dh500fine under the Federal Traffic Law.

Authorities urged motorists to adopt safe habits by turning off the engine, removing the key and locking the vehicle every time they step away, no matter how briefly.

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Dubai Airports unveils smart gate pre-check for passengers

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Passengers travelling through Dubai International Airport (DXB) can now check if they’re eligible to use Smart Gates before reaching passport control.

Dubai Airports has introduced the new Smart Gates Pre-Eligibility Verification service in partnership with the General Directorate of Identity and Foreigners Affairs (GDRFA) to make immigration faster and reduce waiting times.

How it works

Travellers can instantly verify their Smart Gate eligibility through the Pocket Flights platform or by scanning QR codes placed across airport terminals and boarding gates.

The service lets passengers know in advance whether they can use the automated passport gates, helping them avoid uncertainty at immigration.

Faster airport experience

Dubai Airports says the new feature is part of its ongoing efforts to streamline passenger journeys and improve the overall airport experience.

By allowing travellers to confirm eligibility before reaching passport control, the airport aims to speed up immigration processing and make travel through DXB more seamless for millions of passengers each year.

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