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What is the secret of the reliability and stability of banks in the UAE?

Article image: What is the secret of the reliability and stability of banks in the UAE?

There are about 40 international and local banks working on the territory of the UAE. The reliability of banks in the United Arab Emirates is considered to be one of the highest in the world. Banks work by world standards, providing their customers with the highest-class services. All banks operating in the UAE can be divided into several groups:

  • commercial banks;
  • industrial banks;
  • Islamic banks.

The last group of banks is of the great interest to investors and entrepreneurs from all over the world. What predetermines the reliability of banks in the UAE, especially Islamic ones? Islamic banks work by Sharia law. According to Sharia law, the whole banking sphere should work within the framework of certain ethical laws. Islamic banking excludes interest rates and future businesses.

Islamic banks also cannot finance enterprises involved in the production of tobacco, alcohol or related to gambling. The stability of banks in the UAE is determined by some factors, but the presence of Islamic banks is one of them. In recent decades, Islamic banking has been actively developing in Europe, especially in the UK.

How to determine the reliability of the bank in the UAE?

How to determine the reliability of the bank in the UAE? There are international banks with an established reputation on the territory of the UAE. Their reliability and stability are unlikely to cause anyone any doubts. These are banks like Barclays Bank P.L.C. (Barclays), HSBC, Royal Bank of Canada (Royal Bank of Canada), with branches in Dubai and Abu Dhabi and many others.

The most authoritative and safe local banks are Emirates NBD, Abu Dhabi Commercial Bank (Commercial Bank of Abu Dhabi) and Dubai Islamic Bank (Islamic Bank of Dubai). The stability of banks in the UAE, as well as their reliability, is a guarantee of a successful business for investors and entrepreneurs. The work of the banking sector of the Emirates is regulated by the Central Bank of the United Arab Emirate (Central Bank).

Central Bank of the United Arab Emirate is responsible for the monetary and credit policy of the state. One of the main tasks of the Central Bank of the United Arab Emirate is the control over the operation of the UAE banking system, as well as support for the national economy. Thus, the stability of banks in the UAE is determined by its balanced policy.

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