COVID-19 Response and Financial Performance
Economic fundamentals remain healthy supported by
proactive policies by the regulators
Robust infrastructure in place to support economic stability and
recovery
☐
Large hydrocarbon reserves continue to support economic
strength.
Strong relations with the international economies supported by
stable government with domestic political stability.
Successful USD 2 bn bond and Sukuk issuances by Government
of Dubai reflects the continued high investor confidence in the
Dubai economy by the international investment community.
بنك دبي الإسلامي
Dubai Islamic Bank
Capital Ratios in UAE Banking System (%)
CET 1 Ratio
Tier 1 Capital Ratio
16.5%
16.4%
15.8%
14.7%
14.7%
13.9%
Dec 2019
Mar 2020
Jun 2020
IFRS 9 Guidance and
prudential filters
Zero Cost Funding
facility
Fiscal strength remains robust supported by strong policy response
In July, Dubai announced a new AED 1.5 billion stimulus
package to reinforce liquidity of companies and support
business continuity.
Total stimulus from Dubai government now totaling AED 6.3
billion (1.6% of GDP).
AED 100 bn TESS Program from UAE Central Bank have provided
support to 300,000 customers, 10,000 SMEs and 1,500 private
sector companies.
Banks in UAE remain well capitalized, with average CET 1 Ratio
at 14.7% and Tier 1 Capital Ratio at 16.4% as of H1 2020.
Sources: UAE Central Bank, Dubai Statistics Center
UAE CB TESS Program
Postponement of Basel III
implementation
Loan to Value ratio increase
for first time home buyers
Waiver of CBUAE processing
fees in payment systems
Increase of the cap for
contactless card transactions
Payment deferral relief on
outstanding loans
TESS
Program
Reduction of reserve
requirements
Capital buffer relief
Stable funding relief
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