Strategic Imperatives and Financial Overview
UAE Banking Market Update
Highlights
UAE Banking Sector Growth (AED billion)
UAE Banking sector is the largest by assets in the GCC
1,800
The sector is dominated by 23 local banks which account for more than 75% of banking
assets; 28 foreign banks account for the remainder
1,600
1,400
1,662
1,562
1,480
1,223
UAE loan growth has outstripped deposit growth before H1 2008
1,200
UAE Banking system liquidity tightened in 2008 due to outflow of c. AED 180b of
speculative capital and the Global credit/liquidity crisis following the Lehman's collapse
Government intervention during H2 2008 and 2009 helped improve liquidity and
capitalisation:
- Additional liquidity facilities from UAE Central Bank
- AED 50b deposited into local banks; option to convert to LT2 capital
Deposit & capital market guarantees announced
- Tier 1 injections by Abu Dhabi (AED 15b) and Dubai Governments (AED 4b)
Source: UAE Central Bank, EIU, Emirates NBD estimates
1,000
859
800
639
600
448
331
367
400
200
273
321
387
506
643
758
934
915
948
0
2002 2003
2004 2005 2006
2007
Banking Assets
Nominal GDP
2008
Loans & Advances
2009 2010
Deposits
Composition of UAE Banking Market (AED billion)
Loans
205
883
1,088
Deposits
200
850
1,050
Assets
295
■ Emirates NBD
1,367
Other Banks
Source: UAE Central Bank, 31 December 2010
Loans and Assets presented gross of impairment allowances
Emirates NBD
1,662
GCC Banking Market
Banking Assets
USD billion
Assets
% GDP
UAE(1)
453
175%
W
KSA
377
91%
Kuwait
147
133%
Bahrain(2)
45
45
212%
Oman
41
Qatar
32
1) Includes Foreign Banks; 2) Excludes Foreign Banks
Saudi, UAE, Kuwait, Qatar as at 31 Dec 2010; Bahrain, Oman as at 31 Oct 2010
Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts
29%
83%
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