UAE banks benefit from US Fed rate rises

UAE banks benefit from US Fed rate rises:

Banks in the UAE are reaping the benefits of the US Federal Reserve’s three rate rises so far this year, with healthy increases in net interest incomes helping bolster profits.

With the dirham pegged to the US dollar, the actions of the US central bank have a direct impact on interest rates charged by UAE banks.

The UAE Central Bank last increased its repo rate by 25 basis points and raised interest rates on certificates of deposit on Sept. 26 to bring it in line with the Fed’s earlier move.