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UAE banks lay off hundreds, close 49 branches due to slow economic growth

HSBC Bank [File photo]
HSBC Bank [File photo]

The English-speaking Emirati Khaleej Times newspaper reported that in the third quarter of 2019, the merger of two local banks caused licensed commercial banks to drop to 59, including 21 national banks and 38 foreign banks.

ADCB merged with Union National Bank in May 2019, as the combined entity took over Al Hilal Bank. The merger left hundreds of employees redundant.

Hundreds of employees from various departments have also percent off in several banks as a way to reduce costs due to slow economic growth.

READ: Bollywood’s first gay romantic comedy banned in UAE

In November 2019, HSBC bank laid off 40 employees in the United Arab Emirates.

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 newspaper quoted the UAE Central Bank as saying on Saturday that it is closely following up these developments and that it “is continuing its efforts towards settlement in the banking sector and obliging banks in the United Arab Emirates to achieve job settlement for Emirati citizens by 40 per cent within three years.”

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