Moody's global credit rating agency, expected the stability of the performance of UAE and GCC banks over the next 18 months in light of the continued momentum of economic recovery in the UAE and other GCC countries and the rise in crude oil prices.
The Agency's Vice President, Ashraf Madani, affirmed that "the economic recovery in the coming year will reflect the gradual rise in crude oil production and the strong recovery at the level of various economic sectors in the UAE and the GCC countries," expecting the banking sector in the UAE and the GCC countries to maintain the high quality of its assets, even if non-performing loans increased relatively with the expiration of the periods of forgiveness and support plans.
The agency estimated that the regulatory measures and massive infrastructure projects will contribute to boosting bank credit growth in the coming year. The agency attributed its expectations to the economic recovery in the region after easing the restrictions of the economic closure and the rise in oil prices, which enabled the UAE and the Gulf states to achieve revenues that helped them move the wheel of economic activity at a faster pace. Moody's expects regulatory measures and large infrastructure projects to support credit growth in the coming year, as loans are likely to grow by an average of 5 percent in UAE banks in the Gulf states.
Source (Al Khaleej Newspaper-UAE, Edited)
