The document summarizes the UAE banking sector. It notes that the sector is governed by the UAE Central Bank and consists of 48 licensed national banks and 27 foreign banks. A SWOT analysis identifies strengths like economic growth fueling sector growth and high profitability. Weaknesses include a fragmented sector and high exposure to real estate loans. Opportunities exist in retail, mortgage, and Islamic lending. Risks include a lack of experienced executives and credit concentration in certain sectors.

1. UAE Banking Sector Group 7

2. Banking establishments are more dangerous than standing armies - Thomas Jefferson

3. UAE Banking Sector - Overview The sector is governed by UAE central Bank established in 1980 48 Licensed Banks 21 National Banks 27 foreign Banks

4. S W O T SWOT Analysis of UAE Banking Sector Strengths Banking sector growth is fueled by UAE’s economic growth Banks benefit from favorable demographics Majority government ownership provides an advantage to national banks Healthy competition Strong profitability and high credit ratings Weaknesses Fragmented sector No credit history of expatriate population High exposure to real estate loans or mortgages. Thus, if a softening takes place in the real estate sector, it will ripple through the system Banks have resorted to higher cost sources of funding like EMTNs, syndicated loans, and sukuks; which have raised their funding costs on one side and created a better asset liability management on another Opportunities Tremendous potential in segments such as retail, mortgage, SME, Islamic lending The corporate sector is yet to benefit from infrastructure, housing, tourism and manufacturing projects, along with the growth in other sectors Risks and Challenges Lack of experienced banking executives Credit concentration in certain sectors Competition will intensify, leading to pressure on spreads, margins and market shares Rising cost of funding

5. UAE has the highest penetration in GCC in terms of banking assets to GDP (180.20%), loans to GDP (105.30%) and deposits to GDP (105.60%)

6. Loans growth in UAE