BANKING BOOM

U.A.E.-based bank Mashreq saw its profits hit $1 billion in 2022, leading a booming year for the country's banks. Group CEO, Ahmed Abdelaal, is looking to tech and talent for future growth

- LAYAN ABO SHKIER

With the collapse of the US-based Silicon Valley Bank and Signature Bank at the beginning of 2023, the year did not seem too promising for the global banking sector. However, it looks like MENA-based banks, especially those in the GCC, are doing relatively well, unlike their Western counterparts. According to a report by Moody’s published in March 2023, broad franchises and sovereign footprint are helping make GCC lenders immune to the financial unrest in the U.S.

“When we see evidentiary pressure happening globally, then disruption is bound to impact you wherever you are, but this is where the fundamentals of your economy come to play. Being in this part of the world today is a privilege,” says Ahmed Abdelaal, Group CEO of U.A.E.-based Mashreq.

According to the banking veteran, who draws on over 30 years of industry experience, the support of the region’s governments, the strong fundamentals of the economy, and the investor-friendly and welcoming environment are among the factors that are minimizing the impact of the global financial turmoil and are helping entities like Mashreq to grow further.

Many of the most valuable Dubai-based banks ended 2022 on a good note. Emirates NBD, the second most valuable bank in the U.A.E. as of February 2023, saw its profits surge by 39.8% in 2022 compared to 2021, while Dubai Islamic Bank saw a 26% hike in its net profits. However, Mashreq has boomed significantly, posting a 252% surge in net profits in 2022 to hit $1 billion compared to $292.9 million in 2021.