An analysis of the United Arab Emirates banking sector Research Paper

An analysis of the United Arab Emirates banking sector - Research Paper Example In the present day context, the role played by the UAE banking sector can be observed as quite significant for the country’s elevating economic growth rate, both in the micro and macro environments. The banking sector of UAE offers a range of financial products and services targeting both the domestic group of customers and the international clients. Additionally, the recent banking scenario of the country has been witnessed to experience an increasing competition owing to enhanced product innovation requirements and availability of various substitute products/services (Arab News, 2012). Concerning the recent alterations of the industry scenario owing to the impact of the recent global financial turmoil, continuous influence of globalization and altering customer preferences, it can be assumed that the strategies considered by the banks in UAE have changed dramatically towards gaining better flexibility, competency and sustainability. With this concern, the discussion of this report will be focused on comparing two major banking corporations operating in UAE, i.e. Abu Dhabi Islamic Bank (ADIB) and Commercial Bank International (CBI). Hereby, the discussion will emphasize on five most common banking services, i.e. savings account, travel loans, car loans, education loans as well as home or construction loans to comprehensively explain the differences in both the banks’ strategies. Comparison between Abu Dhabi Islamic Bank (ADIB) and Commercial Bank International (CBI) Savings Account The banking corporations have been highly focused on delivering a range of financial products and services to an extended number of consumers in order to provide financial benefits. With this concern, the services rendered by today’s banking industry through savings account has been one of the common and most successful services to gain customer satisfaction by dealing with the client’s deposit amounts. The service is also identified to facilitate the cus tomers in obtaining a security assurance of the deposited balance providing the partial benefits of a fixed account along with the benefits of a current account to withdraw any specific amount at frequent intervals through an easier transaction process (Ayub, 2008). GhinaSaving Account (ADIB) In the context of ADIB, the banking institution focuses on offering effective and beneficial services for the clients. Ghina’s savings account service offers secure and safe access to the account by the authorized person in terms of making any transactions. To open Ghina saving account, the customer must deposit minimum of AED 20,000 and directly the customer will receive a welcome entry coupon (electronic coupon). The electronic coupon will enter the client to two monthly draws of AED 10,000 prizes to 20 winners which held on the 2nd and 4th Thursday of every month. After collecting four coupons the customer will be able to enter the grand draw of AED 2 million and AED 500,000 every fou r months. The client can receive extra electronic coupon for every deposit of AED 20,000 and maintain it for a calendar month. If the account balance is less than 20,000 the customer will lose all his coupons. The profit on Ghina saving acc