By Andrei Skvarsky.
The United Arab Emirates’ retail banking sector is going to have revenues growing at a pace 64 times as fast for the period from 2021 to 2026 as was the case between 2016 and 2021, according to calculations by Boston Consulting Group (BCG).
BCQ forecasts in a report that the sector’s revenues would go up at a compound annual growth rate (CAGR) of 6.4 per cent between 2021 and 2026 compared with a 0.1 per cent CAGR increase shown in the preceding five years.
A CAGR is a rate of growth of an initial investment plus reinvested returns on it.
“The UAE has deployed extensive efforts towards driving sustainability forward in the country under the framework and in alignment with the UAE Green Agenda 2015-2030. Retail banks have a critical role in contributing to the vision of the nation,” the English version of Amman-headquartered website Al Bawaba quoted BCG principal Martin Blechta as saying.
The Boston-headquartered global consultancy also projects general economic growth at a CAGR of 8.8 per cent for the 2021-2026 period for Gulf Cooperation Council member countries, including the UAE.
In November, UAE Banks Federation chairman Abdulaziz Al Ghurair said the assets of the UAE banking sector as a whole had surged to $900bn from $75bn between 2000 and today and that the sector’s revenues would swell by 50 per cent by 2030.
The UAE’s banking industry would grow faster than the country’s economy as a whole, Emirati English-language daily Khaleej Times cited Ghurair as predicting.
Sorry, comments are closed for this post.