UAE enters 'new era of growth and prosperity' under President Sheikh Mohamed's leadership

This will enhance its leading role as an 'effective and influential' economic power, the Central Bank of UAE governor says

The UAE is entering a new phase of 'growth and prosperity' under the leadership of Sheikh Mohamed, the Central Bank of the UAE's governor said. Ryan Carter / The National

The UAE is entering a new era of "growth and prosperity" under the leadership of Sheikh Mohamed bin Zayed, the country's new President, which will be reflected through its prosperity and progress, the Central Bank of UAE's chief has said.

This will enhance the UAE's leading role as an "effective and influential" financial and economic power, and a global development model to be followed, Khaled Balama, the CBUAE's governor, said in a statement on Sunday.

"We pledge to work with every effort and determination to embody [Sheikh Mohamed's] wise vision in developing the financial sector, strengthening the UAE's position as an advanced global financial centre, and supporting the comprehensive development process of the country under his wise leadership," the governor said.

The comments came after Sheikh Mohamed was elected the country's president on Saturday. The official announcement followed a meeting in Abu Dhabi of the rulers of the Emirates.

Sheikh Mohamed becomes the third president in the UAE's history, following the passing of Sheikh Khalifa on Friday.

The central bank was quick to react at the start of the Covid-19 pandemic in taking proactive measures to cushion the impact of the health crisis on the country's economy.

King Felipe VI of Spain walks with President Sheikh Mohamed at Abu Dhabi's Presidential Airport

President Sheikh Mohamed meets Israel's President Isaac Herzog, centre, Israel's Minister of Communications Yoaz Hendel, second from right, and Israeli ambassador to the UAE, Amir Hayek, right.

Prince Khalid bin Salman, Saudi Arabia's Deputy Minister of Defence with Sheikh Tahnoun bin Zayed, UAE National Security Adviser, at Abu Dhabi's Presidential Airport

Frank-Walter Steinmeier, President of Germany, is received by President Sheikh Mohamed.

Mahmoud Abbas, President of the Palestinian Authority, with President Sheikh Mohamed.

Admiral Sir Tony Radakin, Britain's Chief of the Defence Staff, with President Sheikh Mohamed.

The President, Sheikh Mohamed, receives condolences from the Emir of Qatar, Sheikh Tamim, at the Presidential Airport in Abu Dhabi. Rashed Al Mansoori / Ministry of Presidential Affairs

UK Prime Minister Boris Johnson speaks with Sheikh Mohamed. Abdulla Al Junaibi for the Ministry of Presidential Affairs

President Joko Widodo of Indonesia offers condolences to Sheikh Khaled bin Mohamed, Chairman of Abu Dhabi Executive Office. Abdulla Al Neyadi for the Ministry of Presidential Affairs

Joko Widodo, President of Indonesia with Sheikh Mohamed bin Zayed. Abdulla Al Neyadi for the Ministry of Presidential Affairs

Prince Moulay Rachid of Morocco offers condolences to Sheikh Mohamed at the Presidential Airport. Abdulla Al Junaibi for the Ministry of Presidential Affairs

Asaad bin Tariq Al Said, Deputy Prime Minister of Oman, third from right, and Shavkat Mirziyoyev, President of Uzbekistan, fourth from left, offer condolences to Sheikh Mohamed. Abdulla Al Junaibi for the Ministry of Presidential Affairs

King Hamad of Bahrain, front right, and Sheikh Nasser bin Hamad, fifth from left, speak with Sheikh Hazza bin Zayed, Vice Chairman of Abu Dhabi Executive Council, left. Abdulla Al Neyadi for the Ministry of Presidential Affairs

Col Jaimie Norman, Military Assistant to the British Prime Minister, speaks with Lt Gen Sheikh Saif bin Zayed, UAE Deputy Prime Minister and Minister of Interior

The President, Sheikh Mohamed, receives Dr Muhammad Al Manfi, President of the Libyan Presidential Council. Hamad Al Kaabi / Ministry of Presidential Affairs

King Hamad of Bahrain walks with the President, Sheikh Mohamed. Hamad Al Kaabi / Ministry of Presidential Affairs

King Hamad of Bahrain and Sheikh Nasser bin Hamad offer condolences to Sheikh Dr Sultan bin Khalifa, adviser to the President, Sheikh Mohamed. Abdulla Al Neyadi for the Ministry of Presidential Affairs

Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of Interior, speaks with Prince Moulay Rachid of Morocco. Rashed Al Mansoori / Ministry of Presidential Affairs

Shehbaz Sharif, Prime Minister of Pakistan, offers condolences to Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs. Abdulla Al Junaibi for the Ministry of Presidential Affairs

Sheikh Tamim bin Hamad Al Thani Emir of Qatar, with Sheikh Mohamed bin Zayed. Abdulla Al Junaibi for the Ministry of Presidential Affairs

Sheikh Khaled bin Mohamed, Chairman of Abu Dhabi Executive Office, Sheikh Zayed bin Hamdan and Sheikh Shakhbout bin Nahyan, Minister of State. Hamad Al Kaabi / Ministry of Presidential Affairs

Asa'ad bin Tariq Al Said, Deputy Prime Minister of Oman, right, and Uzbekistan's President Shavkat Mirziyoyev, third right, offer condolences to Sheikh Mohamed. Abdulla Al Junaibi for the Ministry of Presidential Affairs

Sheikh Mohamed receives a foreign delegate offering condolences. Abdulla Al Junaibi for the Ministry of Presidential Affairs

Ibrahim Mohamed Solih, President of the Maldives, with President Sheikh Mohamed.

Prince Muqrin bin Abdulaziz of Saudi Arabia with Sheikh Tahnoun bin Zayed, UAE National Security Adviser.

Frank-Walter Steinmeier, President of Germany, meets Dr Anwar Gargash, Diplomatic Adviser to the UAE President.

Marzouq Al Ghanim, Speaker of the Kuwait National Assembly, with President Sheikh Mohamed.

Dr Nayef Falah Al Hajraf, Secretary General of the Gulf Co-operation Council offers condolences to Sheikh Hamdan bin Zayed, Ruler’s Representative in Al Dhafra Region.

Saudi Arabia's Prince Muqrin bin Abdulaziz with President Sheikh Mohamed.

Abiy Ahmed, Prime Minister of Ethiopia, with President Sheikh Mohamed.

Shavkat Mirziyoyev, President of Uzbekistan, with Dr Sultan Al Jaber, Minister of Industry and Advanced Technology.

Abul Kalam Abdul Momen, Minister of Foreign Affairs of Bangladesh, offers condolences to Sheikh Mohamed.

Hussein Ibrahim Taha, Secretary General of the Organisation of Islamic Co-operation, with Sheikh Abdullah bin Zayed.

Dr Nayef Al Hajraf, Secretary General of the Gulf Co-operation Council, centre, with Sheikh Khaled bin Mohamed, Chairman of Abu Dhabi Executive Office.

King Felipe VI of Spain offers condolences to President Sheikh Mohamed at the Presidential Airport in Abu Dhabi.

Abiy Ahmed, Prime Minister of Ethiopia, with Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council.

Abul Kalam Abdul Momen, Minister of Foreign Affairs of Bangladesh, with Sheikh Hamdan bin Zayed.

Philip Mpango, Vice President of Tanzania, walks with Sheikh Shakhbut bin Nahyan, Minister of State, at the Presidential Airport.

Gen Mohamed Dagalo, Deputy leader of Sudan’s Transitional Military Council, with Sheikh Hazza bin Zayed, Vice Chairman of the Abu Dhabi Executive Council, and Sheikh Hamdan bin Zayed, Ruler's Representative in Al Dhafra Region.

Field Marshal Sheikh Khalifa bin Ahmed Al Khalifa, Commander-in-Chief of the Bahrain Defence Force with Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation.

Ahmed Aboul Gheit, Arab League Secretary General, offers his condolences to President Sheikh Mohamed.

The UAE introduced an economic stimulus package worth Dh388 billion ($105.65bn). This included Dh50bn under the targeted economic support scheme (Tess) — a programme designed to help lenders mitigate the effects of the Covid-19 pandemic, support the country's economic recovery, and boost liquidity in the financial and banking sector.

Despite the pandemic's impact globally in 2020 that sent the world into its deepest recession since the 1930s, the UAE economy bounced back strongly and is forecast by the CBUAE to grow 4.2 per cent in 2022.

The UAE’s economy is expected to grow 4.9 per cent in 2022, according to Japan's Largest lender MUFG. Dubai's Emirates NBD forecasts an expansion of 5.7 per cent and Abu Dhabi Commercial Bank estimates 5 per cent, supported by strong oil sector growth.

Banks in the UAE have started reporting growth and will return to pre-pandemic levels of profitability in the next 12 to 18 months on the back of stronger net interest income and increasing business momentum, Moody's Investors Service said in a report in February.

Profitability will be driven by growth in net interest income, underpinned by rising interest rates expectations and strong business momentum supporting non-interest income, while provisioning efforts ease, it said.