"S&P": UAE banks continue to achieve strong results during 2024
Dubai, April 30 / WAM / Analysts from the S&P Global credit ratings agency reported, during a media seminar on the trends of credit ratings for the Gulf Cooperation Council countries in 2024, that UAE banks will continue to achieve strong results during the current year, supported by the levels of interest rates prevailing so far. .
In the agency’s comment on the announced expansion of Al Maktoum Airport and its impact on the real estate sector in nearby areas, it expected it to have a direct impact on projects and demand for housing in areas near the new airport.
During the symposium, S&P Global Ratings analysts discussed key trends and issues related to the markets, banking, energy, corporate and infrastructure sectors in the GCC countries.
Mohamed Damak, financial institutions ratings analyst at Standard & Poor’s Global Credit Ratings Agency (S&P Global), said: We expect this year to witness three cuts in interest rates of 75 basis points in the second half of the year, then a further reduction of 125 basis points. basis point in 2025.
He pointed out that UAE banks will continue to achieve strong results this year, supported by the fact that interest rates remain high despite the expected reduction trend.
Damak also said, “When talking about asset quality, the picture is still strong, and the level of non-performing loans is low and their coverage ratio reaches 100%, and this is more than sufficient.”
In turn, Tatiana Leskova, Analyst, Corporate Ratings at Standard & Poor’s Global Credit Ratings Agency (S&P Global), spoke about the real estate sector and the developments it has witnessed over the past years, and its path in the coming years.
Regarding the real estate sector in Dubai, she pointed out that purchase transactions, demand and prices all witnessed an increase during the last period, and therefore, over the past few years, real estate developers have greatly improved their financial solvency and enhanced cash balances and collections.
She talked about the impact that the recent announcement of the expansion of Al Maktoum Airport will have to be the largest airport in the world with a capacity of up to 260 million passengers annually, pointing out that the project will have an impact on the city and the economy as a whole, and will have direct impacts during the coming period on the real estate sector, especially in the regions. Nearby.
She pointed out that there are many existing projects in the areas near the airport, and many areas that are being developed, in addition to other projects that will start later and will accelerate after the announcement of the expansion.
She continued, “The workforce at the airport itself and in the surrounding projects will constitute a large force of demand for housing in areas near the airport.”
For his part, Emir Mojcek, Director and Principal Analyst, Insurance Ratings at the agency, spoke about the insurance sector in the region, expecting that the sector will continue to achieve good profitability and that insurance premiums will grow with the support of new projects in the region in general.
He also expected that car and property insurance prices would rise and that this would be reflected in a rise in insurance premiums in general.
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