Consumer confidence in UAE banks climbs to 90%, here’s why

Abdulaziz Al-Ghurair, chairman of the UAE Banks Federation (UBF), lauded the growing consumer confidence in the UAE banking sector, which has risen from 84 per cent in 2022 to 90 per cent in 2023.

Addressing a press conference held recently at Mashreq Bank’s headquarters in Dubai, Al-Ghurair emphasised that this uptick reflects the sector’s steadfast evolution, underscoring customer trust as a cornerstone of banking and finance.

“The increase in consumer confidence underscores the continuous development of the UAE banking sector,” stated Al-Ghurair. “The UAE ranks above the global average in the trust index, surpassing prominent international financial centers, affirming our sector’s adeptness in catering to diverse customer segments.”

Read: UAE banking sector assets hit record Dhs4.1tn in 2023

Al-Ghurair highlighted its strides in digital transformation, leveraging technologies such as artificial intelligence, blockchain, and data analytics.

He noted, “Under the direct supervision of the Central Bank of the UAE, the banking sector is accelerating digital transformation to deliver services that exceed customer expectations, bolstering digital infrastructure, and fortifying cybersecurity.”

Robust performance from UAE banks

Al-Ghurair, who is also the chairman of Mashreq, lauded the robust performance of UAE banks, citing significant increases in net profits, operating profits, revenues, and assets, coupled with sound financial indicators characterised by high capital efficiency ratios, provisions, and reserves.

Al-Ghurair emphasised the sector’s proactive stance in adapting to fluctuating international interest rates and the ongoing transformation of banking services to meet evolving customer demands. He stressed the leadership role of UAE banks in digital innovation, focusing on enhancing digital infrastructure, APIs, cloud computing, and digital channels.

Moreover, Al-Ghurair underscored the imperative of investing in human capital to navigate evolving requirements, advocating for the development of innovative technology by attracting, qualifying, and training digital-age talent.

Al-Ghurair predicted an acceleration in the trend toward personalised digital banking experiences, facilitated by data analytics and artificial intelligence.

He highlighted the sector’s commitment to sustainability, promoting environmental, social, and governance (ESG) principles, and supporting Emirati talent through initiatives like the Emiratisation Programme.

“Banks in the UAE are endeavouring to integrate sustainability into their operations and services by offering green financing products specifically designed to support sustainable projects, including those for SMEs investing in renewable energy and sustainable technologies.

“With national banks pledging Dhs1tn for sustainability projects by 2030, we expect to see a significant increase in green financing initiatives in the coming years and further steps towards a more sustainable banking sector,” he highlighted.

UBF’s role is key to the sector

Jamal Saleh, director general of the UAE Banks Federation, emphasised the federation’s commitment to fostering dialogue with the media, recognising its role as a strategic partner in economic development.

Saleh reiterated the federation’s dedication to upholding integrity, honesty, transparency, innovation, and creativity in the banking sector