UAE central bank is monitoring job cuts in financial sector

Marco Green
February 26, 2020

The UAE's overall real gross domestic product, GDP, is estimated to have grown by 2.9 percent in 2019, the Central Bank of the UAE revealed.

The country's hydrocarbon sector grew at 7.six% in 2019, although the non-hydrocarbon sector expanded by, the lender report explained. Job losses also follow the merger of banks in the past years. The merger left hundreds of employees redundant.

Sluggish economic growth is weighing on the UAE's finance industry.

On Tuesday, HSBC announced 35,000 job cuts across its global network after its 2019 net profits plunged almost 50 percent.

Standard view of the ADNOC headquarters (L) and Emirates Towers (R) are found in Abu Dhabi, United Arab Emirates, December 23, 2018.

Commercial International Bank said last September that it would provide voluntary retirement to employees, and the newspaper reported that this had resulted in the dismissal of 100 employees.

On the other hand, Abu Dhabi Bank laid off hundreds of employees earlier this month, while Emirates NBD, the largest bank in Dubai, cut about 100 jobs.

The UAE economy grew by 2.9 per cent in 2019 as compared to 1.7 per cent in the previous year, mainly driven by growth in the oil sector, the Central Bank said in its fourth-quarter report. "In addition, banks play a major role to increase the rate of Emirati workforce in the sector by offering career opportunities for Emirati graduates and professionals", the apex said in a statement.

Other reports by Click Lancashire

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