Economic growth born of high oil prices and low
interest rates enabled the banking sector to expand
with a Compound Annual Growth Rate (CAGR) of
32.2% during the five years leading up to 2008.
Total assets of $403bn in 2008 meant that the
UAE had the largest banking sector in the Gulf
Cooperation Council (GCC).
Subsequent challenges ensued following the
international financial crisis of 2008, the effect of
which was tempered by a $13.6bn liquidity facility
for the banks provided by decisive and timely action
from the Ministry of Finance. Following government
guarantees of bank deposits and a further injection of
liquidity to the tune of $4.4bn in 2009, the Emirate’s
well-positioned banking sector weathered the storm
better than most.
The National Bank of Abu Dhabi is the largest bank
in the Emirate and the second largest in the wider
UAE. It is 70% owned by the government investment
arm, the Abu Dhabi Investment Council.
In accordance with Vision 2030, the National Bank of
Abu Dhabi is expanding into international markets.
It has extensive activities abroad in markets such as
Oman, Kuwait, Egypt, Sudan, London, Washington,
Geneva, Paris, Hong Kong, Jordan and Libya.
The second largest bank in the Emirate, Abu Dhabi
Commercial Bank is following suit. ADCB, which is
also part-owned by Abu Dhabi Investment Council to
the tune of 65%, is pursuing expansionist strategies in
Egypt and Malaysia.
There are a growing number of Islamic banks due
to public demand. The Abu Dhabi Islamic Bank was
established in 1997 and has grown from strength
to strength under the leadership of CEO Tirad
Mahmood.
It is also joined in the Sharia compliant banking
sector by Al Hilal Bank, a 100% government owned
Islamic bank, the 8th in the UAE, which has also
recently expanded into Kazakhstan.
According to Michael Tomalin, Chief Executive,
“The National Bank of Abu Dhabi is strong and
stable. We closed 2009 with flat earnings at a time
when others were less fortunate. We have made a
large amount of provision and are in steady position
going forward.”
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