Businesses in the UAE will take on a careful method to continue a stable development drifty in 2016 despite of a hold back in the worldwide economy in the wake of record-low oil rates in the region.
Business specialists averred that the UAE economy will remain strong to headwinds established by unstable oil and equities, tight liquidity and slowdown in China, Europe and escalating markets. They uttered assurance in the government’s economic diversification strategies and asserted the nation’s constant investment in infrastructure projects will remain the economy on intensification course in 2016.
According to the CEO of Noor Bank, this idea is based on the fact that the essentials of the economy are robust, with diversification helping to make it strong to macroeconomic risks.
He also stated that liquidity might have stiffened compared to 2014, but it is also a fact that the sector’s average capital sufficiency ratio is 18.3%, which is considerably higher than the needed 12%. Furthermore, while a part of SME financing has gone resentful, it is less than 5% of banks’ books.
The bank also stated that it has developed progressively in the past eight years by performing to its intensities in the UAE’s viable banking landscape.
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