"government liberalized its service sector and also it streamlined many of its banking regulationsaccordingly.From the recommendations it can be understood that the banking sector has not been free fromproblems, there have been areas the CBU had to take measures to improve the banking. We notethat major domestic banks had received low Moody?s ratings in the financial strength of thebanks. The reason for the lower rating is because many of the UAE major banks have a long wayto achieve many international standards. Additionally, the other major problem facing the banking sector in the UAE is the lack ofmanaging the multiple ownership management by the local banks which has also resulted in thelower scores in the Moody?s financial strength rating. For example, commercial banks in theUAE maintain a greater share in the insurance and equity firms but lack formal mechanisms tomonitor possible anti-trust violations. The other problem that the UAE banks had to overcome is the inconsistencies of all the sixemirates banking laws and inconsistencies in the federal and the emirates banking laws mayresult in the impacting the economy of the country. One of such instance would be the ruling of71 the courts which may make conflicting judgments in certain instances.The banking sector in the UAE had also suffered in their profitability during the 2009 as theglobal financial crisis impacted the significantly and the Q1 2010 year-on-year comparativestudies have been disappointing. The decline in the IPO business and the trade finance and theoperating income has had a similar negative impact on the revenue, fee and commission incomethat would definitely impact the profitability of the banks. Also the stagnation in the advance71International Business & Economics Research Journal – January 2007 Volume 6, Number 1 growth and the loans due to low customer demand and/or high funding costs also impact theprofitability of the banks.The researches have stated that the problem with the banking during the year 2011 wouldcontinue to exist for another 18 to 24 months, due to the real estate markets in all the emiratesespecially Abu Dhabi, Dubai, and Sharjah, that have continued to show negative trends in theprices and the yielded rentals.However, the trade policy review and the IMF have expressed positive comments in thewillingness of the UAE banking sector to imbibe all the required comments of liberalization andto achieve better results in the competition with the banking sector. The UAE financial andbanking sector has shown readiness to become part of the global system. As stated above thebanking industry is well organized, guided and profitable by the CBU. Therefore, it can beconcluded from the entire discussion in the dissertation that the banking sector has been and willbe playing a major role in the promoting globalization of the UAE economy further.Additionally, from the UAE the national report on April 2017 we gather that irrespective of thefact that the banking sector has been broken during the recent years due to the low oil prices butthe banking industry remains in good shape in comparison to its other global peers and isthriving hard to be in the race. The report also stated that there has been signs of improvementeven after many dismal years in the UAE?s banking sector. 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