Capital Adequacy and Divisional Performance
UAE Banking Market Update
Highlights
UAE loan growth has outstripped deposit growth in recent years
UAE Banking system liquidity tightened in 2008 due to outflow of
c. USD 50b of speculative capital and the Global credit/liquidity crisis
following the Lehman's collapse
Government intervention has been welcome:
USD 13.6b backstop facility from MOF
USD 19.1b set aside for direct injection into UAE banks;
USD 13.6b deposited to date; option to convert to LT2 capital
- Deposit & capital market guarantees announced
Abu Dhabi Government injected c. USD 4.1b of Tier 1 capital into the
Abu Dhabi banks
Dubai Government injected USD 1.1b of Tier 1 capital into Emirates NBD
Government of Dubai announced a USD 20b bond program
UAE Banking Sector Growth (USD billion)
174
138
122
105
100 87
90 74
425
403
333
254
230
234
206
175
2002
2003
2004
2005
2006
Banking Assets
Loans & Advances
2007
Nominal GDP
Deposits
2008
2009
Composition of UAE Banking Market (USD billion)
Source: UAE Central Bank, EIU, Emirates NBD estimates
Loans
60
229
289
Deposits 49
218
268
Assets
78
347
■Emirates NBD
■ Other National Banks
Source: UAE Central Bank, 31 December 2009
Loans and Assets presented gross of impairment allowances
Emirates NBD
GCC Banking Market
Banking Assets
USD billion
Assets
% GDP
UAE(1)
403
159
Saudi Arabia
351
79
Kuwait
134
69
89
Qatar
111
124
425
Bahrain (2)
48.5
Oman
36
75
1) Includes Foreign Banks
2) Excludes off-shore banking units
Source: UAE Central Bank; National Central Banks, 31 December 2008 and Emirates NBD forecasts
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