Traditional Banks - United Arab Emirates

United Arab Emirates

Net Interest Income in the market segment of Traditional Banks market in the United Arab Emirates is forecasted to reach US$44.99bn in 2024.
Traditional Commercial Banking dominates this market with a projected market volume of US$30.29bn in 2024.
The Net Interest Income is expected to exhibit an annual growth rate (CAGR 2024-2028) of 4.85%, resulting in a market volume of US$54.37bn by 2028.
In global comparison, the highest Net Interest Income is projected to be generated in China, amounting to US$4,690.0bn in 2024.
The traditional banking sector in the United Arab Emirates is experiencing a shift towards digitalization to cater to the tech-savvy population.

Key regions: Singapore, United Kingdom, Germany, Brazil, United States

Definition:

The Traditional Retail and Commercial Banks market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.
The traditional banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. These banks have a long history of serving customers and have established relationships and a deep understanding of the financial needs of their communities. They offer a wide range of services and are able to provide personalized advice and support to their customers.
In this market, banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. However, they also face challenges, such as increased competition and changing customer preferences, which are driving the need for continuous improvement and adaptation.
Overall, the traditional retail and commercial banking market provides a wide range of financial services to both individuals and businesses through established, trusted channels and continues to play a vital role in the financial landscape.

Structure:

The market consists of two segments:
- The Traditional Retail Banks market refers to financial services provided to individual consumers (e.g., personal loans, savings and checking accounts, credit cards, mortgages).
- The Traditional Commercial Banks market refers to financial services provided to businesses, including small and large enterprises (loans, lines of credit, other financial products specifically designed for businesses).

The market data comprises Net Interest Income, the value of Deposits, the value of Loans, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the retail and commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

The Traditional Banks market in United Arab Emirates is experiencing a notable shift in customer preferences, market trends, and local special circumstances.

Customer preferences: Customers in the Traditional Banks market in United Arab Emirates are increasingly seeking personalized and convenient banking services. With the rise of digitalization, there is a growing demand for online banking options, mobile apps, and seamless integration of services. Customers are looking for efficient ways to manage their finances and conduct transactions without the need to visit physical bank branches frequently.

Trends in the market: One prominent trend in the Traditional Banks market in United Arab Emirates is the focus on innovation and technology. Traditional banks are investing heavily in digital transformation to enhance customer experience, streamline operations, and stay competitive in the market. This includes the adoption of artificial intelligence, blockchain technology, and data analytics to offer tailored financial solutions and improve operational efficiency.

Local special circumstances: The United Arab Emirates has a unique market environment characterized by a high expatriate population and a strong emphasis on luxury and premium services. Traditional banks in the country are adapting their offerings to cater to the diverse needs of both local residents and expatriates. This includes providing specialized services such as Sharia-compliant banking products to meet the religious and cultural preferences of the population.

Underlying macroeconomic factors: The Traditional Banks market in United Arab Emirates is also influenced by macroeconomic factors such as the country's economic diversification efforts, regulatory environment, and geopolitical stability. As the UAE continues to diversify its economy away from oil dependence, traditional banks are exploring new opportunities in sectors such as tourism, real estate, and technology. Additionally, regulatory reforms aimed at enhancing transparency and governance are shaping the competitive landscape of the banking sector in the country. Geopolitical stability and the UAE's strategic location as a global business hub further contribute to the growth and development of the Traditional Banks market in the region.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.