A sluggish economic growth is weighing on the UAE’s finance industry/Bloombergby Bloomberg
The Central Bank of the UAE (CBUAE) said that it is closely monitoring job cuts in the country’s financial sector.
In a statement, CBUAE said that it is closely following the recent occurrences of downsizing amongst financial institutions in the country to ensure that downsizing is not adversely affecting regulatory compliance and market conduct.
Abu Dhabi Islamic Bank plans to save around AED 500 million ($136 million) by cutting jobs and closing branches. The lender joins competitors such as First Abu Dhabi Bank and Emirates NBD in reducing their headcount.
Consolidation in the Arabian Gulf banking sector on the back of tougher competition and regulation has also put pressure on financial sector jobs. Abu Dhabi, home to six per cent of global oil reserves, has stepped up efforts to create leaner and more competitive financial institutions.
Dubai Islamic Bank (DIB) is also expected to start a sweeping round of job cuts with planned more than 500 dismissals at newly acquired Noor Bank as part of cost cuts across both lenders.
Additionally, sluggish economic growth is weighing on the UAE’s finance industry.