In a recent media briefing, Abdulaziz Al Ghurair, chairman of the UAE Banks Federation, announced that the UAE’s banks have seen substantial profit growth in the first quarter of 2024, surpassing last year’s figures and showing a remarkable 23 percent increase quarter-on-quarter. This significant growth is attributed to the thriving economic environment in the UAE, which continues to foster lucrative opportunities for the banking sector.
During the briefing, Al Ghurair expressed his views on the newly implemented corporate taxes, stating, “First-quarter banks’ profit after-tax have done better than last year. They have grown because there is a good opportunity in the economy to make money,” highlighting the positive impact of government policies on the business climate. He further commented on the tax structure, noting, “Time has come that we pay back. I don’t mind paying taxes if I can make money. Paying 9 per cent and 15 per cent next year is not an issue. Our customers and investors also look at our before-tax profits and after-tax profits.”
Al Ghurair also emphasized the essential role of taxes in funding critical infrastructure and public services such as roads, education, healthcare, and environmental sustainability. These contributions, he noted, are pivotal in making the UAE an attractive destination for living and conducting business, thereby drawing more corporate activities to the region.
Reflecting on the performance of specific banks, Al Ghurair revealed that Mashreq, part of the Al Ghurair business empire, reported a 25 percent rise in profits for the first quarter. Similarly, First Abu Dhabi Bank saw a 5.6 percent increase, and Commercial Bank International enjoyed a 19 percent profit boost. Other local banks have also registered strong performances, underscoring a prosperous period for the banking industry within the UAE.
Looking ahead, Al Ghurair forecasted a transformative future for UAE banking, driven by technological advancements and changing consumer preferences. He predicted a shift towards more digital-centric banking experiences and increased reliance on mobile banking platforms. Furthermore, he anticipated that personalized financial services would become standard as banks leverage data analytics and artificial intelligence to better understand and serve their customers.
Al Ghurair’s insights reflect a robust financial sector poised for continued innovation and growth, reinforcing the UAE’s position as a leading global banking hub.
