Dubai: Local banks in the United Arab Emirates will return to making good profits despite uncertain economic conditions, the UAE Central Bank governor was quoted as saying.
"The worst effects of the world financial crisis are behind us," Sultan Bin Nasser Al Suwaidi told the UAE's Arabic language newspaper Al Ittihad.
"Now we are looking to the future ... we've established a comfortable base and the economy is becoming more competitive," he said.
Al Suwaidi said local banks' positive reception of the Dubai World debt proposal as well as strong cash reserves and capital would help the banking sector meet any necessary levels of provisioning.
The UAE economy is expected to lag behind its Gulf peers this year as banks in the world's third largest oil exporter remain reluctant to lend following a Dubai debt restructuring.
Dubai World sealed a deal to restructure $23.5 billion in debt with its core lenders last week, but it has yet to strike an agreement with remaining creditors.
Dubai World's restructuring chief said last week that the firm can slightly increase the cash coupon offered to banks, depending on which option creditors choose.
