UAE’s Central Bank Issues New Regulation for Specialized Banks

The Central Bank of the UAE (CBUAE) issues a new regulation concerning specialized banks. (Asharq Al-Awsat)
The Central Bank of the UAE (CBUAE) issues a new regulation concerning specialized banks. (Asharq Al-Awsat)
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UAE’s Central Bank Issues New Regulation for Specialized Banks

The Central Bank of the UAE (CBUAE) issues a new regulation concerning specialized banks. (Asharq Al-Awsat)
The Central Bank of the UAE (CBUAE) issues a new regulation concerning specialized banks. (Asharq Al-Awsat)

The Central Bank of the UAE (CBUAE) has issued a new regulation covering licensing, prudential and conduct requirements for specialized banks.

The objective of the new regulation is to provide a regulatory framework in which specialized banks can operate in the UAE financial sector in a "robust and prudent manner,” the CBUAE said in a statement.

Specialized banks are allowed to conduct their activities in the UAE Dirhams only and operate according to a low credit risk model, said the statement.

They can be established either as a conventional specialized bank without Sharia-compliant offerings, or as a specialized Islamic lender, the regulator said.

Banks are licensed under the CBUAE’s new regulation and are allowed to practice different financial activities to serve the local community, such as account opening, card issuance, and retail and wholesale lending.

They are permitted to provide services to UAE nationals and UAE residents only.

The regulation sets a minimum paid-up capital requirement of AED300 million (USD81.6 million) that specialized banks must maintain and a risk-based capital adequacy requirement that they should continuously adhere to, the banking regulator said Saturday.

It also sets the total consolidated assets of specialized banks at a maximum of AED25 billion (USD6.8 billion).

"The CBUAE stresses the importance of specialized banks’ compliance with all regulations, standards and notices issued for the banking sector, except where there are specific provisions contained in the new regulation which apply to specialized banks only," the central bank said.



Abu Dhabi's Long-haul Carrier Etihad Airways Sees Record $476 ml Profit in 2024

An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo
An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo
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Abu Dhabi's Long-haul Carrier Etihad Airways Sees Record $476 ml Profit in 2024

An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo
An Etihad Airways plane lands at Heathrow during Storm Isha in London, Britain, January 22, 2024. REUTERS/Matthew Childs/File Photo

Long-haul carrier Etihad Airways announced Wednesday it made a record $476 million profit in 2024, part of a financial rebound for the Abu Dhabi-based airline.

The airline had revenues of nearly $6.9 billion in 2024, compared to $5.5 billion in 2023. Its profit in 2023 was just $143 million.

Etihad attributed its higher profit to increased passenger numbers, a recovery in its cargo operations and cutting its costs. It flew 18.5 million passengers in 2024, up 32%. Its cargo revenues for the year were $1.1 billion, up 24%, The AP reported.

“These results are testament to the dedication of our people who have worked together for a purpose: delivering our strategy," CEO Antonoaldo Neves said in a statement. “Looking ahead, I am confident we will continue to be a financially strong airline delivering extraordinary customer experiences, fulfilling our shareholders' mandate and contributing to the long-term prosperity and success of the UAE.”

Etihad’s network now flies to 80 locations with a fleet of 97 aircraft.