Central Bank of the United Arab Emirates new governor

The president of the United Arab Emirates promoted the central bank’s deputy governor to be governor, after the previous incumbent resigned after just a year. The UAE’s official Emirates News Agency announced Sheikh Khalifa bin Zayed Al Nahyan had appointed Khalid Muhammad Salem Balam Tameemi as governor on April 7. Sheikh Khalifa is the emir of Abu Dhabi, the UAE’s largest emirate, making him president of the UAE ex officio. Tameemi succeeds Abdul Hamid Muhammad Saeed Al-Ahmadi, who the news 

Al Tameemi, who has worked in banking and financial services for more than three decades, previously held the central bank's vice chairman post. He was previously a board member at the General Pension and Social Security Authority, and an executive director of the real assets department at Abu Dhabi Investment Council.

He will take over from Abdulhamid Saeed Alahmadi, who became governor last April at the height of the coronavirus outbreak and is retiring, according to state-run WAM news agency.

The UAE pledged billions of dollars last year to combat the impact of the virus - mostly monetary programs aimed at reducing or waiving payments. Its economy is set to grow 3.1% this year, according to the International Monetary Fund's latest estimates, a partial recovery from last year's 6% contraction 

The role of a central bank governor in Arab Gulf countries differs from elsewhere, as the regulator pegs its currency to the dollar and policy tends to move in lockstep with the U.S. Federal Reserve.

Al Tameemi is a veteran in the world of banking

Khaled Mohammed Balama Al Tameemi has been appointed as Governor of the Central Bank of UAE. Prior to his new role was the vice Governor of CBUAE from February 1, 2021.

Al Tameemi has over 30 years of experience in various prestigious entities and authorities; including being a board member in the Central Bank, General Pension and Social Security Authority, as well as the Emirates Integrate Telecommunications Company (du). Additionally, he had previously held the position of Executive Director of the Real Assets Department at Abu Dhabi Investment Council.

His appointment at this critical juncture will help CBUAE to accelerate the transformation of the UAE financial landscape. In his capacity as the new Governor, Al Tameemi will oversee the execution of the CBUAE vision of promoting monetary and financial stability towards sustainable economic growth through effective supervision.

This milestone comes as part of the UAE’s policy to prepare Emirati cadres to take over key roles, ensuring proper business continuity and reaching desired goals 

Specialized banks can issue debt securities in Emirati dirhams only and with the approval of the central bank, while foreign financing should not exceed 25 percent of total financing.

The system does not allow lending to major shareholders and their subsidiaries, members of the board of directors, external auditors, advisers, and lawyers.

The new low-risk banking system allows specialized banks to borrow from state banks.

The central bank will accept license applications for traditional or Islamic specialized banks, and it is prohibited to operate Islamic windows in traditional specialized banks 

The new low-risk banking system specified the credit anchors allowed for the specialized bank at 10 percent of the total capital funds of the bank for a single borrower, 15 percent for a group of related borrowers, 10 percent of the capital funds for subsidiary and sister companies, and 20 times the salary or 2 percent of the total percentage of total capital funds for bank employees.

The system allows specialized banks to practice different licensed financial activities and to issue credit, debit and prepaid cards if they are in operation with licensed payment systems in the country.

These banks may only provide their licensed services in local currency