The Central Bank said that it is working to increase the rate of Emiratization in the banking sector in the country by at least 40% during the next three years, through the application of points system to ensure a reasonable distribution of those working among banks on the basis of size, pointing out that some entities need to accelerate The pace of recruitment and training of citizens.

The Central Bank said during its meeting in the Middle East banking forum in Abu Dhabi yesterday, that the latest forecast indicates that the economy of the country continues to recover, expecting total growth of 2.4% this year.

Localization

Central Bank Governor Mubarak Rashid Al Mansouri said that 26.1% of the workforce in the banking sector in the UAE are Emiratis, stressing that this sector can accommodate more citizens. The next three years, through the application of the points system, to ensure a reasonable distribution of those working between banks based on their size.

In a speech to the Middle East Banking Forum, organized by the UAE Banks Association in Abu Dhabi, Al Mansouri said the points system takes into account the positions occupied by Emiratis in the administrative hierarchy of institutions.

He pointed out that the number of points targeted by the end of this year is 29 thousand and 736 points, pointing out that the banks have so far completed 28 thousand and 50 points.

Al-Mansouri stressed that the Central Bank is closely monitoring the progress of banks and their initiatives to achieve Emiratisation, pointing out that some entities need to accelerate their recruitment and training of Emiratis.

growth

According to the central bank governor, the latest forecast from the bank indicates that the country's economy continues to recover, with total growth expected to reach 2.4% this year, including 1.4% growth in non-energy sectors and 5% growth in the energy sector.

He said the UAE's banking sector is the largest in the Middle East and Africa, with total assets of $ 824 billion (AED 3,022 billion) as of September 2019.

Al Mansouri pointed to the growth of the banking sector in the UAE with indicators that reflect the soundness of the financial situation. They are regulated by 13% and 8.5%, respectively. Moreover, the financial system remains highly liquid, with 17.6 percent of eligible liquid assets, well above the regulatory minimum requirement of 10 percent.

Digital Age

For his part, said the President of the Union of Banks, Abdulaziz Al-Ghurair, that «banks must change their mindset and way of thinking, where they should think of themselves as technology companies engaged in banking business».

"In the digital age, banks will have to rethink their customer experience as an integrated experience, because that is what will determine customer loyalty in the future," said Al Ghurair.

He stressed that the Union of UAE Banks supports the interests of the entire sector for the benefit of the State and the entire region, and that cooperation is a very important element that should be available in order to strengthen and protect the sector in the future.

"By bringing together the key players in the sector with the seventh edition of the Middle East Banking Forum, we provide a fruitful platform for dialogue, discussion and exchange of ideas necessary to continue building a thriving banking sector," added Al Ghurair.

Financial system

Central Bank Governor Mubarak Rashid Al Mansoori said the UAE's financial system was ranked 31st out of 141 countries, according to the Global Competitiveness Report.

In addition, all credit ratings of national banks in the UAE are at or near “A” levels, according to three major rating agencies.

Deposits increased by 4.3% year-on-year to September 2019, driven primarily by a 5.9% year-on-year increase in residents' deposits, while credit growth remained strong, growing by 5% over the same period.

Overall, the UAE banking sector maintained its profitability, with net profit up 9.9 per cent year-on-year in the fourth quarter to AED 41 billion.

Survey

The Governor of the Central Bank, Mubarak Rashid Al-Mansouri, said that the bank launched its first survey of small, small and medium-sized companies, explaining that the survey included a large sample of those companies with diverse activities.

A national strategy for the development of micro, small and medium-sized enterprises was being finalized.

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