Manuel Fernandez, Skyline College, Sharjah, UAE
Nizar Mousa Fraih Sahawneh, Skyline College, Sharjah, UAE

Banks are the leaders of the financial-service industry. They are the place where one often winds up when one is seeking a loan, a safe deposit locker to protect valuables or a credit card.  The banking industry affects the welfare of every other industry and the economy as a whole. When banks stop lending the rest of the economy often falls apart. The banking system in the UAE is the second largest of the six countries in the GCC. The banks in UAE are divided into two main categories - locally incorporated and foreign banks.

This study aims at finding out the growth of banking sector in the UAE during the period 2002 to 2006 using secondary data

The study reveals that the banking sector in the UAE had spectacular growth in number and in volume of business during the period 2002 to 2006. The total number of banks operating in the UAE has increased from 457 to 637 during the period. The total assets of the UAE banks have increased by 159.26 per cent from Dh. 331.55 billion in December 2002 to Dh 859.57 billion in December, 2006. All the components in the liability side of the balance sheet except government lending funds are showing a positive strong growth. The capital and reserve is growing at an average rate of 38.43 per cent per year.

Keywords: Banking, National bank, Foreign bank, Credit, Deposits, Investments, Capital and reserve, Asset and liability.

Suggested citation: Fernandez, M. & Sahawneh, N.M.F. (2007). Growth of banking in the UAE. Skyline Business Journal, Voume 4, No.1, pp 32-37

Fernandez, M. & Sahawneh, N.M.F. (2007). Growth of banking in the UAE. Skyline Business Journal, Voume 4, No.1, pp 32-37