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Dubai: the plentiful supply of high
quality new
office space has not created property
loan problems yet |
On the surface, prospects for the United Arab Emirates'
financial sector look good. The banks are delivering healthy
profits and are well capitalized, the local economy continues to
thrive on the back of higher oil prices and the financial system
has recovered from the shock of seeing an expatriate Indian
businessman flee Sharjah last year with outstanding debts of more
than $245 million.
However the next two years are likely to prove extremely
challenging. The UAE has to deal with allegations made by some
international regulators and bankers that it has become a centre
for money laundering.
There are also too many banks in the UAE and they have to come to
terms with the prospect of more intense competition from aggressive
international banks once the World Trade Organization's
liberalization of financial markets is introduced...
