Dubai – “ASWAQ”
The UAE’s economic growth is expected to increase to approximately 2.4 percent next year from an estimated 2.2 percent this year due to higher forecasts in oil prices, as recently said by the governor of central bank of the UAE, Mubarak Rashid Al- Mansoori (Pictured above).
Al- Mansoori, when speaking to reporters on the sidelines of an economic conference, hoped that the bank lending growth would be in the range of mid-to high single digit in 2017, similar to this year’s growth.
According to the central bank data in September, gross loans and advances in the banking system increased 5.9 percent y-o-y. Al Mansoori said, when asked about the rise of UAE money market rates to four-year highs, this had resulted from tightening liquidity due to low oil prices, as he noted money rates were also rising everywhere and that UAE banks were continuing to fulfil their corporate lending function. The central bank also provides lending facilities for banks’ use if they needed liquidity.
The UAE plans to pass a law that would allow the Federal Government to issue bonds, but no date has been set thus far. Al- Mansoori said there was no urgency for the government to sell bonds at this stage, but that it might eventually issue a nominal amount to help build a yield curve in UAE markets.