UAE banking sector posts substantial growth in 2oo7

Abu Dhabi: The UAE's banking sector expanded substantially in 2007 over the previous year, a top official announced on Monday.

"The total deposits grew by around 35 per cent to Dh750 billion from Dh555 billion in 2006 and total loans and advances surged by 39 per cent from Dh520 billion to Dh725 billion," said Sultan Bin Nasser Al Suwaidi, governor of the Central Bank.

He said the total assets and liabilities increased by 45 per cent to Dh1.24 trillion compared to the Dh852 billion of the previous year.

"The total profits grew by 28.8 per cent, or Dh5.6 billion, to Dh25 billion from Dh19.4 billion at the end of 2006," he said.

The Central Bank has embarked on implementing its part of the federal strategy announced by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, as from last month.

"The Central Bank was part of the ministerial economic development team, responsible for issues that would create an encouraging environment for growth and economic stability in the country," Al Suwaidi told a bankers' gathering in the capital on Monday.

The issuer bank will address several areas to improve the business environment, including reviewing and improving the business and financial laws, and introducing new ones.

"The Central Bank, Ministry of Justice, Ministry of Finance, and Ministry of Economy will work together on this initiative, and the new laws are going to be drafted in accordance with best international practices," Al Suwaidi revealed.