The Governor of the Central Bank of the UAE, Khaled Muhammad Balama, announced that the country is entering a new era of “growth and prosperity” under the leadership of Sheikh Mohamed bin Zayed Al Nahyan, the new president of the country, which will be reflected in its prosperity and progress.
Balami said in a statement that with Sheikh Mohammed bin Zayed assuming the responsibility of the country’s presidency, “the UAE is entering a new era of growth and prosperity, which is reflected in its prosperity and progress, and enhances its position and leading role as an effective and influential financial and economic power, and a global development model to follow.”
He added, “We pledge to work with strong effort and determination to embody his wise vision in developing the financial sector, strengthening the UAE’s position as an advanced global financial center, and supporting the country’s comprehensive development process under his wise leadership.”
The Central Bank was quick to respond at the start of the COVID-19 pandemic in taking proactive measures to mitigate the impact of the health crisis on the country’s economy.
The UAE provided an economic stimulus package worth 388 billion dirhams ($105.65 billion). This included 50 billion dirhams under the Targeted Economic Support Scheme – a program designed to help lenders mitigate the effects of the pandemic, support the country’s economic recovery, and boost liquidity in the financial and banking sector.
Despite the impact of the pandemic globally in 2020 that pushed the world into its deepest recession since the 1930s, the UAE economy has rebounded strongly and the UAE Central Bank expects it to grow by 4.2 percent in 2022.
Moody’s said in February that banks in the UAE are beginning to grow and will return to pre-pandemic levels of profitability in the next 12 to 18 months on the back of stronger net interest income and increased business momentum.
Profitability will be driven by growth in net interest income, supported by rising interest rate expectations and strong business momentum supporting non-interest income, while facilitating provisioning efforts.