The United Arab Emirates (UAE) has seen significant economic growth over the years, and a key contributor to this growth has been the financial services sector. Among the many institutions in this sector, Union National Bank (UNB) has played a pivotal role.
In 2016, the financial services sector, which includes banks like UNB, contributed 9.8 percent to the UAE’s GDP and 12.8 percent to the non-oil sector domestic product. This is a testament to the sector’s importance in the UAE’s economy.
Commercial banks in the UAE, including UNB, are responsible for nearly 90 percent of total lending in the financial sector. This highlights the crucial role these banks play in providing the necessary capital for businesses and individuals, thereby stimulating economic activity.
Despite challenging market conditions and geopolitical events, the UAE’s banking sector has shown resilience. UNB, in particular, has been one of the most stable banks in the UAE. This stability is reflected in its consistently strong ratings and performance. As of June 30, 2017, UNB’s operating profit was up by seven percent, while loans and advances went up by three percent.
However, it’s worth noting that UNB merged with Abu Dhabi Commercial Bank in 2019. Despite this, the impact of UNB on the UAE’s economy remains significant due to its historical contributions.
In conclusion, UNB’s role in the UAE economy underscores the importance of the banking sector in economic growth and stability. As the UAE continues to diversify its economy, institutions like UNB will continue to play a vital role in its economic narrative.
