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WEDNESDAY, AUGUST 30, 2023 KHALEEJ TIMES
BANKING AND EMIRATISATION
Emiratis Shine In UAE’s Thriving Banking Sector UAE Nationals play a pivotal role in the UAE’s thriving banking sector, contributing their local knowledge, cultural understanding, and leadership skills ♦ Muzaffar Rizvi
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he UAE is renowned for its vibrant economy and flourishing banking sector, which is considered the cornerstone of its financial stability. Over the past few decades, the UAE has experienced remarkable growth, thanks to the visionary leadership and the active participation of Emiratis in various sectors, particularly in the banking industry. The UAE government has been proactively promoting Emiratizstion initiatives, which aim to increase the participation of Emiratis in the private sector, including the banking industry. These measures include providing scholarships, training programmes, and employment opportunities specifically tailored towards empowering Emiratis in the finance sector. Emiratis, in turn, have responded positively, seizing these opportunities by acquiring specialised skills and expertise required in the banking sector. Emiratis’ contributions The UAE Nationals possess an innate understanding of the UAE’s cultural values, traditions, and local market dynamics. This deep understanding allows them to engage effectively with local customers, bridge cultural gaps, and create a sense of trust and loyalty. Emiratis provide invaluable insight into the local market, contributing to the banking sector’s success. Emiratis have made significant strides in leadership roles within the banking sector. Their strong educational background, entrepreneurial mindset, and commitment to excellence have propelled them to take up senior positions, both in local banks and multinational financial institutions. Emiratis serving in these influential positions not only bring a unique perspective but also inspire and mentor young aspiring bankers. There is a general perception that the UAE Nationals mostly prefer retail or teller positions over critical roles in risk, credit, audit and compliance, among others.
But this is no more a case as today Emiratis have been performing in every segment of the banking sector, thanks to extensive training programmes and courses by the Emirates Institute of Finance (EIF). The Institute has been playing an important role in strengthening the UAE banking system through its various initiatives. Under its latest Ethraa programme, the institute intends to localise the financial industry by creating 5,000 job opportunities for Emiratis by 2026. The EIF held the first and second Ethraa Career Fairs in May and July to connect the candidates with important banks and leading companies in the financial sector. The fair saw 3,860 male and female attendees, with over 2,500 passing through evaluation and employment interviews. “We are aiming that the UAE National should be working in critical roles after getting proper training and relevant experience to meet the job criteria from entry level to senior management role. It is our commitment to support the UAE Nationals and train them for critical positions in the banking sector,” according to a senior banker. The leading independent train-
UAE BANKS REMAIN RESILIENT Alvarez & Marsal (A&M), which examines data from the 10 largest listed banks in the UAE for its UAE Banking Pulse report, illustrates a positive trend in the UAE banking sector’s profitability during the second quarter of 2023, primarily driven by an increase in non-interest income and reduced impairment charges. The Central Bank of UAE Credit Sentiment Survey also indicated strong loan demand growth and optimistic expectation on credit appetite from financial institutions. The Central Bank continues to anchor its benchmark rate to the US Federal Reserves and increased it by 50 basis points between first quarter of 2023 to July 2023. Asad Ahmed, A&M Managing Director and Head of Middle East Financial Services, said the UAE banks continue to stand on firm financial ground and are poised to navigate through the broader macroeconomic landscape. “We are continuing to witness sustained resilience in the UAE’s banking sector. Profitability remains robust and is emblematic of the sector’s adaptability, with non-interest income elevation and a reduction in impairment charges steering the positive trajectory,” he said. He said the alignment of the UAE’s interest rates with the US Federal Reserve, marked by a gradual 50 basis points rise from first quarter of 2023 to July 2023, further assists in this economic stance.
ing institute offering world-class education, training, and allied services in banking and finance, has also partnered with Oxford University, Said Business School, and MIT to introduce the groundbreak-
ing Future Tech Leaders Programme. This programme aims to address the critical talent gap in the technology sector, with a specific focus on the thriving Fintech industry.
Emiratis play key role Emiratis play a pivotal role in the UAE’s thriving banking sector, contributing their local knowledge, cultural understanding, and leadership skills. However, challenges such as skills gaps and perceptions must be overcome to ensure Emirati participation continues to grow. By investing in education and training, promoting mentorship programs, and fostering innovation and entrepreneurship, Emiratis can continue to excel in the banking sector, shaping and leading the future of the UAE’s financial landscape. As the UAE banking sector is thriving, the UAE Nationals will have to improve their skills and expertise in the financial industry. There may be a gap between the skills possessed by Emirati graduates and the requirements of the banking industry despite the government’s relentless efforts due to the rapid evolution of the financial sector and the need for specialised knowledge in areas such as fintech and risk management. Experts said bridging this gap remains a crucial challenge that needs to be addressed through continuous training and educational programmes. To overcome the skills gap, the UAE government and banking institutions should focus on investing in targeted educational programmes and specialised training. “Collaborations with international educational institutions and partnerships with established banking entities can enhance the curriculum and provide Emiratis with exposure to best practices in the industry,” according to a banker. He said there is a need to develop mentorship programmes that can facilitate the transfer of knowledge from experienced professionals to younger Emirati talents. “Encouraging cross-generational interaction, sharing experiences, and offering guidance can accelerate the learning curve for Emirati banking professionals and equip them with the necessary skills to thrive in the sector,” he said. In addition, the government should promote innovation and entrepreneurship in the country and Emiratis should be encouraged to explore and embrace innovative technologies that are rapidly transforming the banking industry, such as digital banking and fintech. “Initiatives that foster entrepreneurial spirit and provide support for Emirati startups in the banking sector can create a breed of Emirati innovators who drive industry growth and adaptability,” the banker said.
UAE Nationals Grab More Opportunities At CBD as compliance and risk, where you see significant regulatory changes,” he added.
UAE National’s in senior management positions has increased to 35% in the last five years ♦ Muzaffar Rizvi
C Backing your Career Ambitions At Commercial Bank of Dubai, we are proud to be a leading local financial institution with a legacy of excellence spanning over five decades. Our success is fueled by a culture of diversity, collaboration, and ownership, where every member of our team is valued for their unique talents and strengths. As we continue to grow, we are seeking passionate and energetic UAE Nationals who share our values and are ready to take their careers to new heights. If you think you have what it takes to be a part of our organisation, please send your CV and personal documents to Emirati@cbd.ae. You can also visit us at Ru’ya Careers UAE in the Dubai World Trade Centre from 19 to 21 September 2023. Join us at CBD and be part of an exciting journey towards a brighter future. cbd.ae | Emirati@cbd.ae
ommercial Bank of Dubai (CBD) aims to attract and develop UAE Nationals at all levels to create a talent pipeline for the future, says its senior official. Sultan Al Mahmood, Chief Human Resources Officer, CBD, said the bank’s success over the years is directly attributed to the commitment and capability of UAE National employees, and it will continue to be essential to the bank’s growth. “At CBD, we have increased the percentage of UAE Nationals working in the organisation from 28 per cent in 2017 to 37 per cent in 2023. We have had a clear focus on developing our talent attraction processes to ensure we attract top UAE Talent for roles in the bank,” Al Mahmood told Khaleej Times during an interview. Elaborating, he said UAE National’s in senior management positions has increased to 35 per cent in the last five years. “This is also coupled with a steady rise in UAE Nationals in mid-level management over the same period,” he said. Focus on Emiratisation CBD was established in 1969 and is registered as a public shareholding company. The bank is listed on the Dubai Financial Market and is mostly owned by UAE Nationals, including 20 per cent by the Investment Corporation of Dubai. “We hired more than 100 UAE Nationals so far in 2023 across all levels from entry to top management level. CBD’s total workforce is 1,100,” Al Mahmood said. The bank has built itself into a progressive and modern banking institution, endowed with a strong financial structure and strong management, as well as a loyal and ever-increasing customer and correspondent base. Today, CBD is one of the leading banks in the UAE and offers its customers a full range of retail
At CBD, we have increased the percentage of UAE Nationals working in the organisation from 28 per cent in 2017 to 37 per cent in 2023. Sultan Al Mahmood Chief HR Officer Commercial Bank of Dubai and commercial banking products and services. “Our commercial focus is to build deep and rewarding relationships in the local markets, and we know that attracting, training and retaining the best UAE National employees make that possible. Emiratisation is a key focus and strategic objective for our bank. This is a key agenda item across board and top management team,” Al Mahmood said. “We consider the recruitment of UAE Nationals a priority for our continued success. We aim to attract and develop UAE Nationals at all levels from graduate entry level, helping us to create a talent pipeline for the future, as well as appointing them in leadership and management positions,” he said. “We continue to hire new-tobank UAE Nationals to support the country’s aspiration to prepare their own people for successful careers in banking. We will also focus our hiring on critical roles such
Key programmes Al Mahmood said CBD has successfully implemented various programmes to attract, retain, and develop Emirati talent in the banking sector. He specifically highlighted the UAE National Sponsorship Programme, Professional Certifications, Idikhar Saving Scheme Plan and Exam Preparation Leave to facilitate UAE Nationals in banking sectors. CBD introduced UAE National Higher Education Sponsorship in 2017 offering financial support for higher education to UAE Nationals who display commitment to enhancing the bank’s performance. Under Exam Preparation Leave, the bank provides 10 working days of Exam Leave to employees for courses. “The course being undertaken must be relevant to the employee’s job role and/or improve the capability of the individual’s contribution to the bank. This is available for both preparation and appearance in the exam,” Al Mahmood said. About Idikhar Saving Scheme Plan, he said it is a tenure-based programme that allows Emirati employees to plan their future by saving through a scheme that guarantees exceptional returns. “This is a best-in-class benefit in the market and is available to UAE National employees. The programme also aims to promote a culture of savings and runs over a six-year period,” he said. In addition, he said the bank has developed a number of targeted programmes for the development of UAE National talent within the bank. Elaborating, he said the ‘Bedayati programme’ is a rigorous and transformative six-month learning and development journey. It is designed for high school graduates to impart intensive training, equipping participants with the knowledge and skills essential for excelling in the banking industry. “The bank has welcomed the graduation of 46 trainees from Bedayati programme in collaboration with EIF recently. We are also hiring 26 fresh graduates to Tumoo7 management trainee programme and Future Tech Leaders’ programme,” Al Mahmood concluded.
