Central Bank to cap interest on credit cards

The UAE Central Bank is finalising rules that would cap the interest rate banks charge on credit cards at 18 per cent annually to curb bad loans, according to sources. >> Read more

Mashreq announces 30 lucky Abu Dhabi winners

Mashreq’s one of the UAE’s leading financial institutions announced 30 lucky i-Pad winners as part of its recently launched Abu Dhabi campaign. Eligible customers entered the draw through spending over AED 250 in select stores at Abu Dhabi Marina Mall. >> Read more

UAE bank customers `fed up`

FGB’s Abu Dhabi Credit Card Fulfills the Dreams of More than 500 winners in 2011

Abu Dhabi, December 12, 2011:  As per its commitment to the communities in which it operates, First Gulf Bank (FGB), the leading financial partner of choice in the UAE, held the Abu Dhabi Credit Card annual draw at FGB’s headquarters in Abu Dhabi. The last draw of this year saw the announcement of 47 lucky winners. Hadee Sameh is the grand prize winner of a luxurious 2 bedroom, sea view apartment at Ocean Terrace, at Al Reem Island – Abu Dhabi.  >> Read more

Emirates NBD and RTA unveil co-branded `Go4it` Visa credit card

UAE. Emirates NBD, a leading bank in the region, Roads and Transport Authority (RTA) and Visa, today unveiled the “Go4it” Credit Card,” which combines the features and benefits of a Visa credit card and the proprietary Nol transit application, used for making payments on the RTA transit network and at parking meters.  A unique product, the co-branded “Go4it” Visa Credit Card is the first of its kind in the Middle East, and is the result of technical integration and careful planning in choosing meaningful benefits that provide customers with added value. >> Read more

NBAD Reaps Benefits from Formula 1

The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE and the Official Bank of 2011 Formula 1™ Etihad Airways Abu Dhabi Grand Prix, increased attraction to its activities and services at Yas Marina Circuit (YMC) during F1 races. “Abu Dhabi executed a magnificent hosting of the Grand Prix. With the attention that the F1 attracts, Abu Dhabi’s success cemented this city’s position as a world destination city,” said Michael H. Tomalin, the Group Chief executive of NBAD. “The National Bank of Abu Dhabi celebrates its partnership with Abu Dhabi and Etihad Airway and we are very proud to be a part of Abu Dhabi’s success in hosting the Grand Prix.”  >> Read more

Mashreq offers 1 per cent cash back

DUBAI: Mashreq, announced its latest ‘Mashreq Privileges’ offerings for all Debit Card holders. Valid until Dec.15, 2011, the customer is eligible to earn 1 per cent cash back on all transactions during the promotion period. Mashreq Debit Card members will earn 1 per cent cash back on every spend of Dhs1,000 anywhere in UAE or overseas. The 1 per cent Cash Back can be earned for single or multiple transactions; an opportunity for customers to save as they utilise their Mashreq Debit Card to make any purchase or payments such as utility bills, shopping etc. Mashreq bank has played a pioneering role in the industry, particularly in retail banking. Among its many firsts, it was the first to launch such products as travelers’ cheques, credit cards and ATMs.  >> Read more

NBAD launches three SME Accounts

Competition is heating up on the UAE mortgage scene, with banks resorting to aggressive interest rate cuts. Going below the crucial 5 per cent mark, mortgage rates are currently about as low as they can get. So, why not take advantage of a promotional interest rate offer and lock yourself into a long-term mortgage?  While lenders have shifted into overdrive to woo customers looking to secure a new mortgage, spare a thought for existing homeowners who are locked into the exorbitant 8 or 9 per cent interest rate characteristic of the boom period. The way out for customers caught in such a situation is to opt for a remortgage facility, which makes it possible for them to pay off the current mortgage with funds from another lender at a more reasonable interest rate.  However, most people looking at remortgaging are put off by hefty transfer penalties of up to 5 per cent of the mortgage amount. They perceive remortgaging to be daunting and expensive. As a result, existing borrowers tend to shy away from switching banks.  >> Read more

Win Back Your Credit Card Spend With HSBC

DUBAI, November 14, 2011/PRNewswire/ --HSBC is delighted to announce the launch of its latest exciting regional campaign that will see 2011 off with a bang. HSBC credit card holders will have the chance to win back anything they spend on their HSBC credit card between November 1st and December 31st in 2011.  This opportunity will be open to all HSBC credit card holders in UAE, Qatar, Bahrain, Jordan, and Egypt, who make purchases using their credit card throughout the last two months of 2011. The more card holders spend exclusively on their HSBC credit card, the better their chances of winning back. Winners will be selected at random from across the region. >> Read more

Get pre-approval for mortgage first

Real estate buyers in the UAE are advised to secure pre-approval for a mortgage before they start searching for an apartment or house to invest in. This will ensure interested individuals have a clear budget and avoid instances where they are forced to withdraw their booking due to financial constraints.  When booking properties, potential buyers are usually required to pay a deposit which is ten per cent of the agreed purchase price. However, some people who reserve residential units later find themselves in a situation where it's no longer possible to buy the property due to personal reasons. If this happens, the buyer may lose the booking fee, or even pay cancellation charges. >> Read more

Open up to loan pre-approval

 You've spotted a house and lot on sale for a very good price. Lest someone else gets it first, you decide to book it right away and secure a loan later. To your disappointment, your bank rejects your mortgage request.  What's worse, the real estate guy refuses to return your booking fee, so you don't just miss out on your dream home, you also lose a good amount of cold, hard cash. A smarter way to go about this would have been to approach a lender for a pre-approved loan. This way you will avoid making impulse or emotional decisions that you may regret later. Loans are pre-approved mostly for mortgages, but borrowers can also get personal and car loans approved in advance.  Essentially, a pre-approved loan is one that is granted in advance, or even before the borrower finds the item or need for it. It basically provides some kind of assurance that the buyer has the necessary funds to make the purchase. >> Read more

Al Hilal Bank offers dream rates for dream cars at Dubai International Motor Show 2011

Al Hilal Bank, a progressive Islamic bank, will offer automobile financing rates starting from 1.99 per cent with up to three months’ grace period during Dubai International Motor Show 2011, the latest edition of the largest and most established motoring event in the Middle East running from today (Thursday, November 10, 2011) up to November 14, 2011 at the Dubai International Convention and Exhibition Centre. Al Hilal Bank is a pioneering participant of various autoshows and always offers exceptional financing packages during such events. Al Hilal Bank customers will have the chance to drive away with their dream car from some of the world’s leading automakers by availing of flexible financing and insurance terms which the bank will explain at Stand A1 of the venue’s Sheikh Saeed Hall. Parties interested in availing of the auto financing promotion will need to present their original passport, salary certificate, driving license, and bank statement for three months. More information on the show is available at http://www.dubaimotorshow.com. >> Read more

Adib eyes sukuk offer

Abu Dhabi Islamic Bank will hold investor meetings for a potential dollar-denominated Islamic bond, or sukuk, starting next week, it said in a statement to the bourse on Wednesday. Meetings kick off in Kuala Lumpur on November 17, and will cover Singapore and the United Arab Emirates, before ending in London on November 21.  A sukuk issue under the bank's existing $5 billion programme "may follow, subject to market conditions," the statement said. The company is eyeing a benchmark-sized deal, widely accepted to mean at least $500 million. >> Read more

Souqalmal.com aims to plug a gap in the UAE market

Website gives people the chance to search and compare credit cards, loans and mortgages.

Dubai: Plugging a perceived gap in the market is always a good place for a start-up to be in. This is what the promoters of Souqalmal.com hope to achieve through their portal offering a comparison of rates and services within the local financial services industry. >> Read more

UAE banks safe from EU crisis

The debt crisis in the European Union is not expected to have a major impact on UAE banks because of local government support and the fact that they have not extended sovereign loans to Europe, a prominent banker says.  Henry Azzam, Deutsche Bank CEO for the MENA region, said the UAE’s 23 national banks and 28 foreign units now enjoy a stronger position than before while the central bank is closely watching the situation.
>> Read more

Sorouh joins calls for cheaper mortgage

The top executive at Sorouh Real Abubaker Seddiq Al Khouri, Sorouh's managing director, said developers in the capital had been lobbying the government to push rates lower.  "The mortgage rate is a big factor in stimulating the market," Mr Al Khouri told reporters yesterday.  Lower interest rates would jump-start the market at a time when consumers were hesitant to buy property, he said. "We are talking to the Government. We've been doing that for a while and the effect has been positive."   Developers hoping to spark sales are increasingly complaining about interest rates, which are typically between 5 and 9 per cent, depending on the applicant. Lenders also require high down payments on most home loans, usually a minimum of 20 per cent of the purchase price. At the same time, the three-month Emirates interbank offered rate has declined from a high of 2.07 per cent in April to 1.48. "They need to lower their [mortgage] rates," Khalid Al Malik, the Dubai Properties Group chief executive, said during last month's Cityscape exhibition in Dubai. "We are struggling because of that."Estate, Abu Dhabi's second-largest property company, has joined the chorus of developers calling for lower mortgage interest rates to boost the struggling market. >> Read more

ADIB wins ‘Best Islamic Bank’ award

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic finance institution, was named UAE’s ‘Overall Top Bank in Customer Service’ at the 7th Annual Bank Benchmarking Index for service excellence by Ethos Consultancy.   Over the years, ADIB has made a consistent and continuous journey towards the top rank. From being ranked 23rd in 2008 to 18th in 2009 and 3rd in 2010 when it was judged to be the most improved bank in customer service.  ADIB also won top rank as ‘Best Islamic Bank in Service Excellence’ in the UAE and was voted ‘Best Branch. ADIB was chosen from among many conventional and local banks researched all over the UAE. >> Read more

Emirates NBD to pay for Dubai Bank in cash

DUBAI - Emirates NBD PJSC, the UAE’s biggest bank by assets, will pay for the acquisition of Dubai Bank in cash, EFG-Hermes Holding SAE said.

The takeover will lower Emirates NBD’s total capital adequacy ratio by 100 basis points, or one percentage point, analysts Murad Ansari and Shabbir Malik said in a report, citing guidance provided by management in a conference call on Tuesdayday. With Tier 1 capital of 13.4 per cent and a total capital adequacy ratio of 21.2 per cent at the end of June, “Emirates NBD has the capacity to absorb Dubai Bank,” the investment bank said.

In the worst case scenario, the acquisition could reduce Emirates NBD’s Tier 1 capital ratio by 263 basis points and the total capital adequacy ratio by 307 basis points, “which though lower are still healthy,” according to the report. >> Read more

UAE financial transactions drop in electronic domain

The UAE Central Bank said yesterday that statistics for the UAESWITCH for the third quarter have shown a slight decrease in number and value of financial transactions conducted electronically through the UAESWITCH.  The total number of financial transactions fell to Dh18.23 billion in the quarter, compared to Dh19.007 billion in the second quarter, down 4.08 per cent.  Also, the total value of transactions fell to Dh20.427 billion in the third quarter, compared to Dh20.983 billion in the second quarter, down 2.65 per cent.  As for the number and value of transactions across the UAESWITCH and other GCC networks, they increased to 940,000 in the third quarter compared to 818,000 in the second quarter, an increase of 14.91 per cent. "It seems the people are shying away from using ATMs and credit cards to do their financial transactions. "They may have taken recourse to using conventional methods such as cash and cheques," said economist Dr. Mohammad Amerah commenting on the Central Bank figures.

Safety fears

"It looks like some people are afraid of using plastic money for the risk of cloning of their cards by unscrupulous elements. They want to avoid risk of being cheated," he added. Amerah said the Central Bank issued circulars recently to commercial banks in order to protect their customers from forgery. It looks like some people seem to have taken precautionary measures against such a possibility, he added. Amerah said if the trend of using less plastic money picks up, it would help consolidate the UAE's financial system. Another UAE-based economist, who didn't want to be identified, said the Central Bank data "potentially indicates a slowdown in consumer demand".

New norms

In March, the Central Bank put a stop to banks selling loans and other financial products to customers over the telephone, in response to complaints by UAE residents against aggressive marketing by banks and finance companies trying to sell products such as credit cards and personal loans over the telephone. In February, the apex bank announced the approval of a new set of regulations with regard to bank loans and other services offered by the banks >> Read more

GEMS Education, NBAD and MasterCard to Launch Loyalty Card for Parents

The National Bank of Abu Dhabi (NBAD), MasterCard Worldwide and GEMS Education today signed an agreement to introduce a loyalty card exclusively for GEMS parents.The payment card comes with a host of discount offers and benefits for parents, which can also be extended to children above certain age under the discretion of parents.

"GEMS Education is pleased to partner with the National Bank of Abu Dhabi (NBAD) and MasterCard to offer our parents more financial flexibility and easy payment options through the introduction of a loyalty card," said Richard Forbes, Director, Marketing and Communications, GEMS Education. "This collaboration builds on our commitment to pass on to our parents and students the benefits of GEMS Education's long and fruitful association with reputable financial institutions like NBAD and MasterCard," he added.  Suvo Sarkar, the General Manager of Consumer & Elite Banking at NBAD, said, "We are pleased to offer the parent community new and easy ways to manage and plan their finances. We are excited to join forces with GEMS Education and MasterCard to work on launching a platform surrounding financial products and services." >> Read more