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Financial sector in the UAE – banks, exchanges, etc.

Article image: Financial sector in the UAE – banks, exchanges, etc.

According to financial analysts, the United Arab Emirates has a balanced and a fairly stable state budget. In recent years, the state holds leading positions in terms of the level of personal income. The United Arab Emirates, in its standard of living, has long been comparable to the most developed countries. The domestic financial sector is also actively developing, besides, the Government of the state implements a policy of supporting the structure and earning yield of public investments abroad.

Banks in the UAE as a leading economic sector

Financial sector of the UAE is one of the major economic sectors, which have an impeccable reputation in the international arena. The reliability and stability of the sector is achieved due to the sound policy of the Central Bank of the UAE. In particular, the Central Bank sets very high standards to its own capitalization of banking institutions. That is why the UAE banks belong to the category of highly reliable financial institutions.

Banking operations and finance in the UAE are regulated by the normative acts of the Central Bank, which define the following types of financial institutions operating in the UAE:

  • investment banking institutions;
  • commercial banks;
  • financial and credit intermediaries.

Each of these financial institutions must obtain the appropriate state license.

Money in the UAE and government support

The Government of the United Arab Emirates, taking into account the realities of the modern international economy, implements special programs aimed at reducing the negative impact of the world-stunning financial crises. For these purposes, the total liquidity of the local banks and the level of public expenditures for this economic sector are increased.

Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:

Besides, a focus on diversification of the national economy is actively supported by means of the creation of industry clusters and the development of the financial sector. In addition, there is a permanent work on the improvement of the regulatory framework, which governs the financial sector of the state. The state expresses full willingness to support local banking institutions. Despite the attempts to reduce government intervention in the private financial sector, banks of the UAE can always count on the assistance of the main financial regulator of the state.

The financial sector of the UAE, including banks, micro credit institutions and exchanges, is very attractive to the potential investors. This popularity is due to the following factors:

  • High reliability, ensured by strict lending criteria;
  • Permanent screening and analysis of the short-term and medium-term prospects.

It should be noted that the UAE banks are actively involved in financing of international trade, including export and import credit programs. The growth and stability of the national banking system is also ensured by means of the development of the local market of the United Arab Emirates. Today, banks participate in the utmost various national projects. Money in the UAE is channelled for the most various projects in the field of water desalination, national power industry, oil and gas sector, and the numerous industries.

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