Interest Rates

Profits at UAE’s major lenders reached USD 4 billion in H1 2021

Profits at the four largest UAE banks rose during the first half of 2021 after an improvement in the operating environment led to lower loan-loss provisions, rise in non-interest income and improvement in operating efficiency. The combined net profit of four major banks, First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank (ADCB), and Dubai Islamic Bank (DIB) reached USD 4 billion in H1 2021, up 17% from the same period last year. The four big banks...

Why UAE interest rates are more negative than they appear

The article originally appeared in The National | Business Banks in the UAE pay 1.25 per cent on time deposits with a maturity of one year. While this may look measly, two things matter for consideration here. First, interest rates are still positive in the UAE, unlike Europe where they turned negative. (Yes, some European banks demand interest from depositors.) Second, while the interest received by UAE depositors is positive, this is technically termed as nominal rate. When adjusted for...