UBF Board of Directors reviews latest banking sector developments

The Board of Directors of the UAE Banks Federation, UBF, met today in Dubai to review the latest developments in the banking sector.

Presided over by Abdul Aziz Al Ghurair, Chairman of UBF, the meeting discussed the federation's future plans and actions that will contribute to accelerating the growth of the UAE banking sector in the face of an increasingly complex regulatory environment and continuing slowdown in global economic growth.

Key topics of discussion included the new Emiratisation scheme introduced for the banking and insurance sectors, which was recently approved by the UAE Cabinet.

Scheduled to come into force in January 2017, the new strategy adopts a point-based system and banks are then rated and rewarded based on their performance across key parameters such as, creation of job opportunities for UAE nationals, the training to develop Emarati's skills, as well as their success in promoting Emirati employees to senior-level positions.

With the phenomenon of de-risking dramatically changing the regulatory and enforcement landscape, the board discussed the multiple challenges posed by de-risking, or the elimination of banking services with certain categories of customers, and the complexities banks face in meeting implementation and compliance requirements.

The board meeting also discussed potential impact of the adoption and implementation of International Financial Reporting Standards 9, IFRS 9, on the UAE’s banking sector.