The Standard & Poor's agency expected a recovery in the UAE's GDP growth this year, after the sharp recession last year due to the Corona pandemic and the drop in oil prices. >
According to Arabiya Net, a report published by the agency entitled Banking Sector Outlook for the United Arab Emirates 2021: The road to recovery is long, that the shocks of the year 2020 will continue to weigh on the economy and the sector State banker.
the agency added that real GDP (in US dollars) will return to 2019 levels by 2023, as key sectors such as real estate, hospitality and retail are likely to remain under pressure During the next 12 months.
and continued: The goal of the concerned authorities to vaccinate 50% of the population by the end of the first quarter of the year 2021 is positive, but the occurrence of new waves of infection and mutations poses great risks. / p>
and the agency expects a decline in the quality of assets and an increase in the cost of risk in banks with the start of the results of the shocks of the year 2020 and the raising of the Central Bank of the facilities announced to reduce the effects of the pandemic gradually in half The second of the year 2021.
and she continued: Given the low interest rates, the profitability of banks will remain low in 2021, as it is possible that some banks will record losses, and capital margins are expected to continue. Strong and stable financing conditions, and the expected government support, will support the creditworthiness of banks in 2021.
