UAE’s banking assets are expected to grow by between 8 per cent and 10 per cent in 2022 as the second-biggest Arab economy continues to recover from the pandemic-driven slowdown and reap the benefits of hosting Expo 2020 Dubai, according to chairman of UAE Banks Federation.
The economic rebound was in large part driven by the Dh400 billion ($108.91bn) monetary and fiscal support by the UAE government, including the Central Bank of the UAE’s relief package of more than Dh250bn for lenders in the country since the onset of the pandemic, Abdulaziz Al Ghurair told a media briefing in Dubai on Sunday.
These measures have played a “positive role” and have “taken us from what could have been a disaster to a manageable outcome”, he said.
“Looking forward to next year, I expect our banking [asset] growth to be around 8 per cent [to 10 per cent], which I think is very decent growth when we see other economies still struggling,” Mr Al Ghurair said.
He expects overall lending growth in the UAE to also reach 8 per cent to 10 per cent next year, driven by continued economic momentum. Demand for loans rose in the lead up to Expo 2020 Dubai and is expected to continue to grow in the coming months.
The UAE economy, which contracted 6.1 per cent in 2020 on the back of the global economic slowdown, has bounced back strongly, boosted by fiscal and monetary support and other government measures. The stimulus announced by the CBUAE included a Dh100bn package and consisted a direct Dh50bn injection of funds through zero-cost collateralised loans provided by the central bank. The targeted economic support scheme (Tess) has benefited both individuals and businesses and helped the banks in managing liquidity during the crisis.
Although the CBUAE in September said that it will start a “gradual and well-calibrated withdrawal” of Tess, parts of which have been extended to July 2022, about “95 per cent of banks have surrendered Tess because they no longer need it”, Mr Al Ghurair said.
It is an indication of the economic recovery, as customers are “out of trouble and they don’t need support”, he added.
“It’s a very good sign when the banks voluntarily give up support,” Mr Al Ghurair said. “I don’t think we need any support from the central bank. I think the central bank, the government and the country has done enough to support various parts of the economy.”
Mr Al Ghurair, who heads the body representing 53 lenders in the country, said it is time for the UAE banks to move on from support phase and look at “the new businesses we want to concentrate on”.
In terms of asset quality of lenders, UBF chairman said banks have been prudent and took provisions last year and booked additional charges for expected loan losses in 2021. The non-performing loans ratio this year is expected to hit about 8 per cent, however, “2022 will be a good year and we will go back to normal” pre-pandemic NPL ratios of about 2 per cent.
“Of course, during the crisis you expect asset deterioration … [but] hopefully, the bulk of it is all behind us,” he said.
But despite pressure on asset quality, capital adequacy ratios of lenders in the country and their cost-to-income ratios, as well as their profitability is still strong, he added.
The banking regulator in the UAE is also in discussions about the replacement of the Emirates Interbank Offered Rate (Eibor) — the benchmark interest rate for lending between banks within the UAE — with a new system that is likely to be implemented “sometime next year”, Mr Al Ghurair said.
“Eibor is in discussion for replacement,” he said. “The central bank has initiated a discussion and a consultant has been engaged and a mechanism is being discussed.”
The CBUAE has already discussed the matter with UBF's capital market's committee and “now we are just waiting for the right time to launch the replacement … we don’t want to shock the system and we want to find the right time of launching”, he added
There are no winners or losers in the new system, which will be “a fair, transparent pricing mechanism”, he said.
The UAE's economy is forecast to grow 2.1 per cent this year, driven by pandemic-mitigation measures, according to the CBUAE's second quarter review. The economy is expected to grow at 4.2 per cent in 2022, higher than the 3.8 per cent previously forecast.
Mr Al Ghurair expects the gross domestic product to grow probably by around 5 per cent next year.
“The Expo opening was a plus for the country. It took nine years in the works to bring Expo to the UAE and I think [the] UAE will benefit from the expo for the next nine years to come,” he said.
The UBF chairman expects tourism and related businesses, including retail, food and beverages, rent-a-car and hotels to recover strongly amid Expo-driven boost in visitor numbers.
“Tourists play a critical role in the economy and everyone will benefit,” he said.
Lenders in UAE have come out of the pandemic as “dynamic” financial institutions and are ready to support the “Projects of the 50” initiative of the government.
“Banks now respond to opportunities very quickly” and are “responsive” to being a partner in the government initiative as it is a “win-win for everybody”, he added.
UBF members are also investing heavily in digitisation and are cutting brick-and-mortar branch network to be more competitive as demand for online products and solutions continues to grow.
Cyber security, however, is critical in an increasingly digital economy and UBF members can “easily double” their current level of cyber security spending in the next few years, Mr Al Ghurair said without giving further details.
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Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
Power: 460hp @ 7,000rpm
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Fuel economy, combined: 10.3L / 100km
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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AT4 Ultimate, as tested
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
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The five pillars of Islam
The years Ramadan fell in May
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
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Company profile
Name: Tratok Portal
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The years Ramadan fell in May
