More than three quarters of consumers in the UAE had high trust in the country’s banking sector last year, a 2 per cent improvement from 74 per cent in 2018, according to the UAE Banks Federation’s (UBF) annual Trust Index survey.
This is the highest reading for UAE banks in the past five years, the federation said on Monday.
“It’s going to be very difficult to keep growing consumer trust forever. We should be ready for a 0.5 per cent to 1 per cent improvement or deterioration on this indicator [for 2020],” Abdulaziz Al Ghurair, chairman of UBF, said at a virtual press conference announcing the survey's results.
With digital transformation, the use of branches will shrink
Trust in the UAE banking sector stood at 70 per cent in 2015 but fell to 68 per cent in 2016 and 2017.
The fifth edition of the UAEBF's Trust Index survey was based on responses from 2,068 adults in the Emirates. It was carried out in collaboration with data provider RFI Group.
Sixty six per cent of respondents said they are impressed with UAE banks. Expat Arabs have the most positive impression of the UAE banking sector at 83 per cent, but this falls to 57 per cent among South Asian expats (from Pakistan, India, Sri Lanka, Bangladesh).
“Maybe Asian customers have a unique requirement or they need unique services both here and back home. If we can [better] link the banking sector between the UAE and the subcontinent, probably that will ease banking for them and enhance the customer experience,” said Mr Al Ghurair, who is also chairman of Mashreq Bank.
Around 73 per cent of Emiratis were happy with banking services in the UAE, while 70 per cent of Westerners expressed their satisfaction and 74 per cent of East Asian (Chinese, Japanese, Korean, Filipino) expats have a positive perception of UAE lenders.
The survey also indicated a growing preference for online banking channels.
While 94 per cent of bank customers use ATMs, only 47 per cent still use bank branches.
Around 61 per cent of consumers use online banking and 67 per cent said they prefer to bank through their mobiles.
Mr Al Ghurair said the use of branches will "shrink" with digital transformation.
"We have fully fledged smart ATMs that can be used to perform any function that you would do in branches. The coronavirus pandemic will help customers migrate from branches and ATMs to online and mobile banking,” Mr Al Ghurair said.
“Eventually, the role of the call centre will also diminish. Customers will need to use call centres only if there is a transactional issue.”
Responding to a question as to whether UAE banks would cut costs further as part of this digital transformation, Mr Al Ghurair said: “Everyone is looking to do their business in a more cost-efficient and efficient way. In the last few months, customers have been moving more towards digital platforms, be it for government entities or large corporates."
The shift in customer behaviour will "require more investment from banks to improve the digital customer experience", Mr Al Ghurair said.
"They will have to drop some services that were available traditionally through branches or other channels. There will be some cost-cutting because of digital transformation,” he added.
The fifth edition of the Trust Index survey also revealed that customers trust traditional banks more than other financial service providers when it comes to the safekeeping of their money.
Traditional banks received a score of 7.2 out of 10 in relation to keeping customers’ money safe, followed by card schemes with a score of 6.6. Digital banks and FinTechs scored 5.2.
The UAE banking sector has a higher trust score than many other developed nations, with 82 per cent of UAE consumers stating that their bank is honest, trustworthy and fair. Moreover, local banks compare favourably to lenders in expats' home countries, the survey found.
“Around 21 per cent of Westerners (Europe, America, Canada) think UAE banks are better than banks back home while 79 per cent think UAE banks are on par with banks in their home country. This is a good benchmark to compare,” Mr Al Ghurair said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
FIXTURES (all times UAE)
Sunday
Brescia v Lazio (3.30pm)
SPAL v Verona (6pm)
Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)
Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
Juventus v Cagliari (6pm)
Atalanta v Parma (6pm)
Lecce v Udinese (9pm)
Napoli v Inter Milan (11.45pm)
FINAL RESULT
Sharjah Wanderers 20 Dubai Tigers 25 (After extra-time)
Wanderers
Tries: Gormley, Penalty
cons: Flaherty
Pens: Flaherty 2
Tigers
Tries: O’Donnell, Gibbons, Kelly
Cons: Caldwell 2
Pens: Caldwell, Cross
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
