Foreign competition for UAE banks soon

Dubai: The UAE is going to open up its banking sector by applying a policy that is non-discriminatory towards foreign institutions, and advances Emiratisation and the security of the financial services sector, a top official said yesterday.

"The UAE Central Bank has consulted the national banks and fin-ancial institutions on the Free Trade Agreement negotiations with the US to receive their feedback," said Nariman Al Awadi, senior manager in charge of the International Trade Agreement Team of the UAE Central Bank.

She added that the major issues related to the FTA negotiations include Emiratisation in the financial sector, (particularly in banking), of ownership, shareholding and board representation, security of assets, support and encouragement for the growth of the financial private sector.

The main demands the UAE faces in the FTA negotiations concerning financial services concern removing restrictions on the number of bank lic-ences, on setting up branches of foreign banks, on foreign ownership, and on the employment of senior management and board members of any nationality.