The first quarter of 2024 has brought positive news for the UAE’s banking sector, with profits showing significant growth compared to the previous year. According to Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, banks’ profits have increased by 23 percent quarter on quarter. This growth is attributed to the favorable economic conditions that are creating opportunities for banks to make money.
In response to a question about corporate tax, Al Ghurair emphasized the importance of businesses contributing back to the government that provides a conducive environment for them to thrive. He mentioned that paying taxes is an obligation that benefits society by funding essential services like infrastructure, education, and healthcare. Despite the introduction of corporate tax in the UAE, Al Ghurair believes that the current rates are low compared to other countries.
Local banks in the UAE have also experienced a boost in profits, with Mashreq, First Abu Dhabi, and Commercial Bank International all reporting positive results in the first quarter. Al Ghurair highlighted the role of technology in shaping the future of banking in the UAE, predicting a shift towards digital-centric experiences and personalized financial services powered by data analytics and artificial intelligence.
As the banking landscape continues to evolve, staying competitive and relevant will require banks to embrace innovation while prioritizing customer needs. The increasing adoption of mobile banking platforms and the use of advanced technologies like AI will play a crucial role in meeting customer expectations and driving the transformation of the banking sector in the UAE. By adapting to these changes and maintaining a focus on customer-centricity, banks can ensure their continued success in the dynamic market environment.
