"economic growth of the Nation, it is very essential to have a well organized and functioningfinancial system.Additionally, the literary review that helps in expanding the scope of our dissertation is the work15 of Dr. Rettab, Fakhr and Dr. Istaitieh in their analysis on Implications of FTA on UAE Banks:An Explorative Assessment, it can be noted that the UAE banking sector is studying liberalizationof the banking sector and financial sectors additionally, in accordance with the propel towardssigning the Free Trade Agreement with the United States of America (USA) and also to in linewith the commitments of entering the General Agreement of Trade in Services under the WTOprinciples. Comparing between the USA and the UAE banking methodology the authors havediscussed in detail the measures the local banks of the UAE should take to succeed in setting upa bench mark to themselves against the world?s best performers and also to thrive and competewith the international banking practices. Further, the authors discussing the implications ofliberalization on the banking and the financial sector state that the process of liberalization hasboth foreseen and unforeseen implications on banks? such as impacting the bank revenues, costs,efficiency level of risk and further, their future outlook and so on. Concluding their analysis theauthors note that liberalization of the banking sector and entry to the foreign banks to join theUAE banking sector has advantages which must be balanced efficiently with the potential costsand risks attached to it. The objective of the report includes assessing the impact of the UAEbanking sector liberalization pursuant to the UAE-USA Free Trade Agreement on the UAEbanks, additionally the report helps in solving queries related to main characteristics andperformance differentials of the UAE banks in comparison to the USA banks. The reason theauthor compared the UAE bank analysis with the USA bank analysis is to statistically analyze15Same as note 9 the impact of the liberalization on the UAE banking sector. The report also analyzes ofimplications of the banking sector liberalization and feasible micro economic policies withmeasures required to properly prepare the banking sector in the UAE to survive with suchliberalization.Before, analyzing the impact of liberalization in the banking sector of the UAE and its impact inthe economic growth of the nation it is very essential to understand the banking sector of theUAE. The work of Bundhun Rebecca in Rise of the UAE as a banking superpower helps in theflow of dissertation by providing a detail analysis on how once a way far and complicated16 financial and banking sector became a global financial hub.One of the important reviews that would help in analyzing the important part of the dissertationis the study of Dr. Lanoszka Anna, and ITC?s Business Briefing Trade Policy that analyze thegeneral obligations and specific commitments under the GATS principles.The dissertation further analyzes the link in between the unilateral and multilateral financialsector liberalization. The aim of this analysis is to understand the principles of the GATS onliberalization of the banking sector in particular. Additionally, the dissertation also examines inmore detail the principles of market access, the relation between the proposed principle marketaccess and regulated competition. The dissertation would be arguing on whether the move toimplement principle market access would be more helpful over the regulated competition for thebetterment of the banking sector or questions if this unqualified market access would achievethose benefits and clarify those issues which a regulated competition could not achieve.However, until there is no proper emerging economic jurisprudence regarding the legitimate16Bundhun Rebecca, “Rise of the UAE as a banking superpower,” 2011; http://www.thenational.ae/news/uae-news/rise-of-the-uae-as-a-banking- superpower; concerns about the impact of principle of market access over the member countries, the principle17 of market access study will struggle for acceptance.The dissertation also aims at studying the commitments on financial services especially thebanking services that have been made by the WTO members and the UAE in particular. It also18 provides a description of how the financial services blend into the GATS framework.After understanding in detail the different literature reviews we would be considering for aneffective dissertation we move further in analyzing the methodology through which we would beaccessing the required data to support our research.METHODOLOGY:After in-depth research on different literary reviews that help in effective analysis of thedissertation, we continue in understanding the different methodologies that can be followed forgaining the required information. The current dissertation is an analytical and cross-sectionalstudy of the UAE banks both domestic and foreign. The data regarding the UAE banks has beencollected from the UAE Central Bank, the International Monetary Fund and other local andinternational sources. The methodology in the dissertation is based mainly on calculating certainratios that reflects performance and structure of the banking sector in the UAE as well as thoseboth national ad foreign banks. These reports analyze the data received from the UAE central19 bank and other Islamic banks in order to make comparisons and draw conclusions.The main reason behind the analyzing the UAE banking sector is to understand how a smallsovereign formed during the 1970?s has taken measures to develop its banking sector by17“Introduction”; http://www.jeanmonnetprogram.org/archive/papers/01/012701-02.html 18Mattoo Aaditya, “Financial Services and the WTO: Liberalization Commitments of the Developing and Transition Economies,” 1998;http://siteresources.worldbank.org/INTRANETTRADE/Resources/MattooFinServ.pdf19Same as note 11 imbibing liberalization and opening its markets to foreign investor to rapidly develop theeconomy of all the Arab emirates in the UAE. This study discusses the readiness of the UAEbanking sector in accepting global challenges of liberalization through statistical information.For the analysis purposes we have used secondary source data and the statistical report ofdifferent surveys. Additionally, the financial reports of bank before and after liberalization, thewebsite of the Central Bank of UAE, EFG Hermes?s website, and other published sources have20 been heavily used during the analysis of the impact of liberalization in the UAE banking sector.Additionally, the WTO and GATS surveys are also analyzed to gain understanding on how theUAE market has opened itself to foreign investors and increased health competition throughliberalization. Further, the dissertation will also highlight important findings of 2012 trade policy21 reviews of the UAE. Further, the dissertation will analyze the forecast summary of the banking22 sector in the UAE and also the challenges facing the banking sector in the UAE. Thedissertation would further analyze the 2001 financial system stability assessment for the UAE23 prepared by the International Monetary Fund staff team.Additionally, for further enhancement on our current topic the different banking regulations thatwould be approached in the dissertation include:The UAE Federal Law No. 10 of 1980 concerning the Central Bank, the Monetary System andthe Organization of Banking (the Banking Law), The UAE Federal Law No. 18 of 1993, as amended (the Commercial Code), 20UAE Central Bank Annual Reports, 2000 – 2003; UAE Central Bank Statistical Bulletins, 2000 – 200421Same as note 522MoukahalWissam, “The banking industry in the UAE,” A Middle East Point of View , 2011;https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/About-Deloitte/mepovdocuments/mepov5/me_pov5_Banking.pdf 23Same as note 110 The UAE Federal Law No. 6 of 1985 concerning Islamic banks, financial establishments andinvestment companies (Islamic Banking Law)In addition to the above mentioned regulations the dissertation will also critically analyzestatistics of the GATS obligations on liberalization of financial services and the trade in servicesfrom the UAE banking sector perspective.As the main topic of discussion is the liberalization of the banking sector in the UAE and theUAE?s accession to the WTO principles and the GATS obligation the statistical informationhelps us in understanding how the nation has overcome all the challenges and became one of thefinancial hubs in the east.After brief introduction on the concept of liberalization and the its impact on the banking sectorof the UAE and the aims and objectives of the dissertation with brief emphasis on differentliterature reviews and approach or methodology of the dissertation we move further inunderstanding the history of banking sector in the UAE and how in a span forty years the nationevolved itself to be one of the financial hubs. The next section will also analyze the bankingsector of the UAE prior to liberalization.HISTORY OF BANKING SECTOR IN THE UAEBefore assessing the implications of liberalization in the UAE banking sector it is essential tostudy the banking structure. Being the backbone of the country?s financial sector and the leastmonopolized and most developed in the region, banking sector dominated the financial24 intermediation in the UAE.24Same as note 11; Financial Intermediation: Financial intermediation is a productive activity in which an institutional unit incurs liabilities onits own account for the purpose of acquiring financial assets by engaging in financial transactions on the market; the role of financial "