(MENAFN) Analysts from S&P Global credit ratings agency have expressed confidence in the continued robust performance of UAE banks throughout the current year, buoyed by the prevailing levels of interest rates. Their assessment comes amidst expectations of strong results driven by favorable economic conditions and monetary policy.

In their commentary regarding the expansion plans for Al Maktoum Airport and its potential impact on the real estate sector in neighboring areas, the agency anticipates a direct correlation between the airport expansion and increased demand for housing projects in proximity to the new infrastructure.

As part of a media seminar focusing on GCC credit ratings trends for 2024, analysts from S&P Global Ratings delved into various key trends and issues spanning markets, banking, energy, corporate, and infrastructure sectors across GCC countries. Mohamed Damak, a financial institutions ratings analyst at S&P Global, highlighted projections for the year ahead, indicating expectations of three interest rate cuts totaling 75 basis points in the latter half of the year. Additionally, a further reduction of 125 basis points is anticipated in 2025.

This optimistic outlook reflects a comprehensive assessment of economic factors and market dynamics shaping the trajectory of UAE banks and broader financial sectors. The anticipated interest rate adjustments are expected to further stimulate economic activity and investment opportunities, contributing to sustained growth and stability in the banking sector. As stakeholders navigate evolving market conditions, strategic insights from credit ratings agencies like S&P Global provide valuable guidance for informed decision-making and risk management strategies. 

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