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UAE growth prospects bright: cbank

The United Arab Emirates economy’s growth prospects are encouraging while banks operating in the country are well-equipped to deal with major stress scenarios and contingencies, the central bank said on Monday.

“As regards the prospects for 2012, the UAE economy may achieve better results than the International Monetary Fund estimate of 3.5 percent growth,” it said in its inaugural financial stability review.

The central bank also said non-oil growth was expected to reach around 4 percent this year, and inflation would remain moderate in line with the IMF’s estimate of 1.5 percent for the year.

Since banks are finalising major debt restructuring deals with various entities, their non-performing loans will likely increase to reflect new terms and conditions, and peak around an average of 8 to 9 percent compared with a ratio of 7.2 percent at the end of 2011, the central bank said.


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