The Central Bank of the Emirates expected that the gross domestic product will grow by 2.4 percent during 2021 and 3.8 percent in 2022, and that the non-oil GDP will grow by 4 percent in both years.
The UAE Central expected, according to the “Financial Stability Report” for 2020, which includes the most prominent indicators of solvency and liquidity that show the flexibility of the financial system of the Gulf state in light of the spread of the “Covid-19” epidemic, that the UAE economy will gradually recover during the years 2021 and 2022 from the repercussions of the pandemic. The report showed that the targeted comprehensive economic support plan was effective in mitigating the risks posed by the epidemic, by ensuring continuous cash flow, in addition to helping individuals and companies affected by the repercussions of the epidemic to overcome temporary difficulties they face in repaying debt.
According to the report; During the year 2020, the Central Bank was keen to closely monitor developments in the banking sector, especially the quality of assets and the growth of lending, as the banking sector maintained its liquidity with a sustainable ability to lend. According to the report, the effects of the pandemic resulted in higher provisioning fees and lower operating income and profitability. The levels of total capital and liquidity reserves remained above the regulatory requirements.
Source (Asharq Al-Awsat Newspaper, Edited)
