Retail Banking in UAE: Coronavirus (COVID-19) Sector Impact

Retail Banking in UAE: Coronavirus (COVID-19) Sector Impact



Summary



The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.



Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.



The ongoing pandemic has affected the UAE’s economy, resulting in a fall in tourism and in the domestic consumption of goods and services. The country’s GDP has been revised downward for 2020 due to the economic disruption caused by Coronavirus. There has been a sharp rise in the cancellation of flights, hotel bookings, and major upcoming events across areas including music, entertainment, art, and sport as a direct result of the outbreak and worldwide restrictions on travel.



This report focuses on the impact of the coronavirus outbreak on the economy and the retail banking industry in UAE. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat coronavirus.



Scope



– The UAE faces a dual economic shock from the impact of COVID-19 as well as the collapse of the oil price. During the course of March the benchmark Brent crude oil price roughly halved to $22 a barrel, and figures from the World Bank indicate that prices are not expected to normalize until 2022, when they are forecast to reach $45 per barrel.

– This will put a significant strain on government income, further aggravating the impact of the ongoing disruptions to economic activity as a result of COVID-19. However, conservative underwriting and supportive government measures – including stimulus packages targeting retail consumers and SMEs – should help cushion the economy and the banking sector.



Reasons to Buy



– Make strategic decisions using top-level revised forecast data on the UAE’s retail lending and deposit industry.

– Understand the key market trends, challenges, and opportunities in the UAE’s retail lending and deposit industry.

– Receive a comprehensive insight into the total consumer loans in UAE, including mortgages, personal and credit card loans as well as retail deposits balances.




Ritesh Tiwari is the Founder of Research By Markets. He has more than 7 years experience in the Market Research industry and a total experience spanning 18+ years. His core experience is in Sales and International Recruitments. Ritesh is a big foodie and a huge football fan, supporting Manchester United (EPL) and FC Barcelona (La Liga). He hardly misses watching any matches when these teams are playing. Get in touch with Ritesh via: enquiry@researchbymarkets.com *Industry Press Release is a part of Research By Markets.