Dubai - Arabstoday
Banking sector in the UAE is going to match up to its regional peers by 2013, a top global provider of ratings and rankings has reported. Concerns about a weak real estate market and Dubai\'s debt projection will continue to be some of the factors for the under performance of banking sector in the country, Business Monitor International has said. Currently the lending activity levels in the UAE are well behind that in Saudi Arabia and Qatar. Provisioning for non-performing loans hit a record high of AED47.1bn in May is a matter of concern, the report said. BMI added that the United Arab Emirates\' banking sector continues to trudge along on its slow road to recovery. \"Regardless of this slightly more sanguine outlook on the domestic operating environment however, banks remain relatively risk averse in our opinion, and have hitherto failed to begin ramping up lending,\" the report concluded. Observers say that the 2013 is the latest when the banks in UAE are likely to come out even. \"Given the risk of further high-profile debt restructurings coming to the surface over the coming 18 months, we maintain our view that the UAE\'s banking sector will underperform its regional peers in Saudi Arabia and Qatar in 2012,\" BMI added