Banks in the United Arab Emirates are preparing for whole hearted financial support to the small and medium scale industry in a bid to boost profit. The move assumes significance in the wake of economic recovery from the credit crisis.
Strong economic fundamentals of United Arab Emirates (UAE) has rebuilt confidence among banks as they have started increasing lending to small and medium size companies. Lenders adopted protectionist approach some time ago given to tumbling position of real estate sector and falling debt recovery.
Strong economic fundamentals of Dubai made securing finance easy for the city-state from various lenders. Dubai index performed well at a time when uncertainties are prevailing in the global market especially in the European markets and US following the debt woes. Recent global financial crisis failed to derail emirates economic recovery and companies are easily securing finance.
Regional uncertainties prevailing in the market failed to deter growth of Standard Chartered that posted a growth of 7 per cent in the Middle East and South Asia, or Mesa, region. Bank’s operating profit before tax stood at $429 million led by a vibrant growth in the UAE despite unrest in the neighbor regions. UAE accounts for 60 per cent of the regional income and 80 per cent of the profit of the firm.
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has announced its financial figures for the second quarter of current financial year, reporting an impressive growth of 10 per cent in its net profit that stood at Dh552 million compared to Dh301 million in the same period of 2010.
DIB’s net profit increased by 50 per cent in the second quarter of 2011 if figures are compared quarter-on-quarter basis.
Abu Dhabi Commercial Bank is all set to divest its 24.9 per cent stakes in the Malaysia-based RHB Capital according to a MoU signed on 17 June, 2011. The stake sale will significantly boost capital of the bank and it is expected to receive about AED 7.0 billion ($1.9 billion) in cash from this sale.