Bank on this

Early this morning the Khaleej Times alerted me to a story (any https://www.khaleejtimes.com/business/finance/united-arab-bank-posts-45-surge-in-2025-profit-as-assets-and-income-climb). Now we all assume that banks make all the money, but that is not the whole story. You see under Sharia law banks have ‘limitations’. Or perhaps better stated “Islamic banking operates under Shariah law, primarily prohibiting interest (aka: riba), excessive uncertainty (aka: gharar), and gambling (aka: maisir). Key rules include mandatory asset-backing for transactions, sharing risks and profits between bank and customer, and investing only in ethical, halal businesses. Common structures include Murabaha (cost-plus financing), Ijarah (leasing), and Musharaka (joint venture).” Are settings that an islamic banks need to adhere to. So when you see these ‘limitations’ and then the Khaleej Times gives us ‘United Arab Bank posts 45% surge in 2025 profit as assets and income climb’ we might see another side, mainly the side of how well the UAE is doing at present. The subtext “A key highlight of the year was the Sharjah-based lender’s successful Dh1.03 billion rights issue, which increased the bank’s paid-up capital by around 50%” with the added “The bank recorded a net profit of Dh438 million for the year ended 31 December 2025, up from Dh301 million in 2024. Total income climbed 31 per cent to Dh797 million, fueled by what the bank described as “strong momentum” across its core businesses. Non-interest income surged by 56 per cent, while net interest income rose 24 per cent.” this is what I call a massive boost to the UAE economy, so whilst you are getting fed up (tired too) on how bad the United States is doing, you see here an example on how it could be done and people better consider the fallout, because at present any dollar (Euro’s and Pounds too) that aren’t currently being invested in Europe, America, Commonwealth, Europe and a few other places are likely being invested in the UAE. I don’t know how well Saudi Arabia is doing, but it is doing a lot better than Europe. So when we get to “Chairman Sheikh Mohammed bin Faisal bin Sultan Al Qassimi said 2025 marked a pivotal year for the bank as it celebrated its golden jubilee and unveiled a refreshed brand identity. “It proved to be a transformative period for UAB, reinforced by decisive strategic initiatives and robust financial performance,” he said. “Operationally, the Bank delivered solid profitability, supported by disciplined execution, prudent risk management, and enhanced operating leverage.”” You know that they are doing it right and a strong willed and able minded board of directors was at the head of that setting. I reckon that the western world will eagerly look at the reports of SAMA (Saudi Central Bank) and the CBUAE (Central Bank of the United Arab Emirates). Because as I see it, the 2025 results are merely the beginning and if my predictions hold firm, the Western world (and its banks) will come under the spell of ‘Dry Well psychoses’ soon enough and when the opportunities of Wall Street dry up because of the economy in the United States, these two countries will get a lot of opportunities ‘handed’ to them and whilst we might worry about the Influence they will gain, these ‘new’ banks will have to adhere to Sharia law and the laws of the land, which prohibits them from making certain steps. So while we might stop at “UAB also reported healthy asset quality, with a net reversal of impairment charges amounting to Dh51 million, translating to a cost of risk of –41 basis points. The bank attributed this to strong recoveries and its “robust risk framework.” Its cost-to-income ratio improved to 46 per cent, down from 52 per cent the previous year, while return on shareholders’ equity stood at 16 per cent.” Banks on a global setting haven’t seen this since the post-WWII Golden Age, which went from 1950–1973, as such the last really successful ‘boom’ period was 53 years ago, so you better bet on the non-Islamic banks taking notice at present. Whilst President Trump will be wondering where the money is going to and he might wonder why no one is betting on his ‘beautiful’ bills, I get the notion that banks might want to vacate towards the settings of SAMA and the CBUAE at their earliest convenience, especially as this comes with an almost certain guarantee for return on their investors. As such I noticed the settings we are given and I wonder how well ADNOC is doing in all this, because their profits go somewhere, don’t they and as I see it, the CBUAE is a safe bet to consider. 

Have a great day today, Perhaps tomorrow I get to write on some gaming IP.