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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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New Dh750m Sharjah-Dubai traffic solution plan: What motorists need to know

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For years, motorists travelling between Sharjah and Dubai have faced some of the UAE’s longest daily traffic delays. Now, a major infrastructure programme announced by Sharjah is aiming to change that.

His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, has unveiled a package of road projects worth Dh750 million that will introduce new routes into Dubai, expand key traffic corridors and create a direct underground link beneath one of Sharjah’s busiest intersections.

The flagship project is a tunnel that will pass underneath Al Taawun Roundabout, creating a dedicated route for vehicles heading towards Dubai through Al Nahda Bridge. The tunnel is expected to remove a significant volume of through-traffic from surface roads, helping ease congestion in an area that regularly experiences heavy peak-hour delays.

New corridor

Alongside the tunnel, Sharjah is building Noor Road, a new corridor that will connect Al Orooba Street directly with Dubai. Though the competition date is yet to be announced, Sheikh Dr Sultan said Noor Road is scheduled to open before the end of 2026 and is expected to provide motorists with an additional alternative to existing entry points between the two emirates.

The projects form part of a broader strategy to improve traffic across Sharjah’s eastern and central districts while strengthening links with Dubai. Road upgrades will focus on improving access between residential communities, commercial centres and major highways, creating a more efficient network for both daily commuters and businesses.

Transport challenges

Traffic between Sharjah and Dubai remains one of the UAE’s biggest transport challenges, with thousands of residents crossing emirate borders every day for work and education. Officials believe the new projects will help distribute traffic more evenly across the network, reduce pressure on existing bottlenecks and improve journey reliability.

Authorities say the investment is not solely about reducing congestion. The developments are also intended to support future urban growth and improve connectivity.

While construction timelines for some elements are still being finalised, Noor Road is expected to be operational by the end of next year, marking one of the first major milestones in the programme.

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Learning to drive in Dubai? RTA approves new training institutes across city

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Getting driving lessons in Dubai could soon become much more convenient for residents living in some of the city’s fast-growing neighbourhoods.

Dubai’s Roads and Transport Authority (RTA) has approved an expansion of areas where new driver training institutes and branches can be established, making it easier for residents to access driving lessons closer to home.

The initiative is designed to support Dubai’s continued urban growth while improving access to essential licensing and driver education services across the emirate.

New areas

The newly approved locations include:

  • Wadi Al Safa
  • Jebel Ali
  • Mushrif
  • Al Maktoum City
  • Madinat Hind

With these communities continuing to attract new residents, the move is expected to reduce travel times for learner drivers while improving access to training facilities.

Opportunity for investors

The expansion isn’t just good news for residents. It also opens the door for accredited driving institutes looking to grow their footprint and for new investors interested in entering Dubai’s driver training sector.

RTA has invited eligible operators and investors to apply for licences to establish new branches in line with the authority’s regulations and service standards.

Ahmed Mahboob, CEO of RTA’s Licensing Agency, said this decision will bring services closer to residents in emerging communities and support Dubai’s long-term development plans.

He noted that easier access to driver training services will help reduce the need for long commutes while contributing to safer roads and better mobility across the city.

He also highlighted RTA’s commitment to supporting investors through a streamlined application process that aligns with existing laws and policies.

Beyond convenience, the expansion is expected to strengthen driver education standards across Dubai by increasing access to quality training and promoting greater traffic awareness among motorists.

As Dubai continues to grow, the authority says expanding driver training infrastructure will play an important role in preparing safer and more confident drivers for the roads.

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UAE waives overstay fines: Stranded travellers to get 30-day visa grace period

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The UAE has introduced a 30-day grace period for individuals who were previously unable to leave the country due to exceptional regional circumstances, giving them time to regularise their status or depart without incurring penalties.

According to the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the grace period runs from June 10 to July 9, 2026, and applies to people who had benefited from an earlier exemption on overstay fines.

The move comes as travel conditions across the region have largely stabilised, allowing affected individuals to make the necessary arrangements to either remain in the UAE legally or complete their departure procedures.

Authorities said the measure is designed to support compliance with immigration regulations while providing a practical window for people to update their residency, employment or visa status.

The ICP noted that its earlier decision to waive overstay fines was introduced as a humanitarian response to exceptional circumstances that disrupted travel plans for many residents and visitors.

With regional conditions improving, the authority said the reasons behind the temporary exemption no longer apply, making it possible for normal procedures to resume.

Individuals who wish to stay in the UAE can use the grace period to adjust their residency or employment status through the usual channels. Those planning to leave the country can do so without any additional preliminary requirements, provided they complete their departure during the specified period.

The authority also encouraged affected individuals to monitor official communication channels for the latest updates and guidance.

Earlier this year, the UAE exempted visa holders, exit permit holders and residents with cancelled visas from overstay fines after widespread travel disruptions, including flight suspensions and airspace closures, prevented many from leaving the country. The exemption was introduced to ease the financial burden on those impacted by circumstances beyond their control.

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