UAE Banking Workforce Reaches Highest Level Since 2015
According to the Central Bank of the UAE's December 2024 Monthly Statistical Bulletin, the banking industry added 878 new employees in 2024, marking a 2.3% increase from the 38,168 employees reported at the end of 2023. This uptick brings the total workforce to 39,046, indicating a sustained recovery and expansion within the sector.
A closer examination of the data reveals that national banks continue to be the primary employers, accounting for 32,590 positions. Foreign banks operating within the UAE employ 6,456 individuals. This distribution underscores the significant role that domestic financial institutions play in the nation's economy, while also highlighting the contribution of international banks to the UAE's financial landscape.
The increase in banking employment aligns with broader economic indicators that suggest a robust financial environment. The CBUAE's Quarterly Economic Review for June 2024 noted that the banking system remained resilient, with adequate capital and liquidity buffers. Total assets in the banking sector reached AED 4.255 trillion by the end of the first quarter of 2024, reflecting a 13% year-on-year growth. This asset growth is indicative of the sector's expanding capacity and its pivotal role in supporting the UAE's economic development.
Deposits have also seen substantial growth, increasing by 15.2% year-on-year as of the first quarter of 2024. This surge in deposits has bolstered funding and liquidity conditions, enabling banks to extend more credit and support various economic activities. The loan-to-deposit ratio improved to 77%, highlighting the sector's ample credit capacity and prudent lending practices.
The UAE's banking sector has not only expanded in terms of employment and assets but has also demonstrated strong financial soundness. Capital adequacy ratios remained well above regulatory requirements, with the overall Capital Adequacy Ratio at 18% and the Common Equity Tier-1 ratio improving to 15% in the first quarter of 2024. These figures reflect the sector's robust capitalization and its ability to absorb potential shocks.
Asset quality has shown marginal improvement, with the Net Non-Performing Loans ratio moderating to 2.3% and the NPL ratio to 5.6% in the first quarter of 2024. Provision coverage ratios have also increased, indicating that banks are well-prepared to manage credit risks. The total provision coverage ratio rose to 94.9%, while the specific provision coverage ratio reached 60.8%, further strengthening the sector's financial stability.
The positive trends in the banking sector are reflective of the UAE's broader economic performance. The nation's Gross Domestic Product has been on an upward trajectory, supported by diversification efforts and strategic investments in various sectors. The government's initiatives to promote economic diversification have reduced dependence on oil revenues, fostering growth in industries such as tourism, real estate, and technology.
The increase in banking employment also highlights the sector's commitment to embracing digital transformation. Banks in the UAE have been investing heavily in technology to enhance customer experience, improve operational efficiency, and stay competitive in a rapidly changing financial landscape. This digital shift has not only created new job opportunities but has also necessitated upskilling existing employees to adapt to new technologies and processes.
The UAE's strategic location as a global financial hub has attracted international banks and financial institutions, contributing to employment growth. The country's stable political environment, robust regulatory framework, and business-friendly policies have made it an attractive destination for foreign investment in the banking sector.
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