Financial Services UAE:
Financial services is one of the most important and dynamic sectors that is contributing to the country’s economic diversification, growth, and innovation that facilitate the management and exchange of money through banking, insurance, investment, payment, and lending. They are essential for the functioning and development of the economy, as they enable consumers and businesses to access and use financial resources, as well as to mitigate and transfer risks. This article will provide an overview of the financial services uae.
Structure of the Financial Services Sector:
The financial services sector in UAE consists of various sub-sectors, such as:
- Banking: It is the largest and most dominant sub-sector of the financial services sector in UAE which offers a range of products and services, such as deposits, loans, mortgages, cards, and Islamic banking.
- Insurance: The second largest sub-sector that offers a range of products and services, such as life, health, property, motor, and takaful insurance.
- Capital Markets: They are the third largest sub-sector comprised of two stock exchanges, the Abu Dhabi Securities Exchange and the Dubai Financial Market offering a range of services, such as equities, bonds, sukuk, futures, and options.
- Other Financial Services: They are the remaining sub-sectors which include financial intermediation, financial leasing, money exchange, and financial technology.
Prospects of the Financial Services Sector:
They have a positive outlook for the future, as the country prepares for major events and is expected to benefit from the following factors:
- Recovery and growth of the economy: The GDP of UAE is projected to grow as the COVID-19 pandemic subsides and the oil prices stabilize.
- Diversification and innovation of the economy: They aim to increase the contribution of the non-oil sectors as the UAE pursues its vision of becoming a knowledge-based and sustainable economy.
- Development and integration of the fintech sub-sector: Their fintech market size is projected to grow as the UAE embraces the digital transformation and disruption of the financial services sector.
- Expansion and collaboration of the regional and international markets: They have signed various agreements and initiatives with other countries and organizations as the UAE strengthens its position as a leading financial hub and gateway in the MENA region and beyond.
The UAE has a creative and efficient financial services sector, which contributes to the country’s economic diversification, growth, and innovation and consists of various sub-sectors which is regulated by various authorities. The financial services sector in UAE has performed well in recent years, despite the challenges, and has maintained its profitability, liquidity, and solvency, as well as its resilience and stability, and has a positive outlook for the future, as the country prepares for major events.