UAE bank branches experience highest revenues, averaging USD18.6M per branch
Date
3/26/2024 8:31:16 AM
(MENAFN) According to a senior executive at Roland Berger, UAE bank branches are experiencing the highest revenues in the region, averaging USD18.6 million per branch. This surge is attributed to the nation's successful digital transformation efforts, which have allowed banks across the Gulf Cooperation Council (GCC) region to reduce the number of branches by 328 within three years. Saumitra Sehgal, the head of financial services in the Middle East for the global consulting firm, conveyed this information to Emirates News Agency (WAM).
Sehgal highlighted that the total number of bank branches in GCC countries declined from 4,067 at the end of 2019 to 3,739 by December 2022. He further emphasized that banks in the UAE witnessed the most significant reduction in outlets, with 157 branches merged or downsized between 2019 and 2022, thanks to digital transformation initiatives.
In April 2022, the UAE Cabinet approved a new Digital Economy Strategy, comprising over 30 initiatives and programs targeting six sectors and five emerging areas of growth. The strategy aimed to boost the digital economy's contribution to the country's gross domestic product (GDP) to 19.4 percent over the next decade. This move was intended to solidify the UAE's position as a leading hub for the digital economy regionally and globally.
Saudi Arabia also experienced a decrease in its bank branch numbers, with 82 fewer facilities reported during the same period.
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