GLOBAL: The UAE continues to be the most competitive banking market in the GCC, although it remains less profitable than markets such as Saudi Arabia, according to Abu Dhabi Islamic Bank (ADIB) in its GCC banking competitiveness report.
It noted that the UAE banks’ net interest margins comprise the lowest in the GCC, at an average of 2.9%.
However Andrew Moir, the global head of strategy and finance at ADIB, said that the UAE remains less profitable than Saudi Arabia, although the emirates possess a larger banking market in terms of assets.
He added that the mix of deposits, low customer charges, the presence of high levels of non-performing assets and competitive dynamics have negatively impacted banking profitability and capital ratios in the UAE.