The UAE’s banking sector remains stable despite global market pressures, with the Central Bank confirming strong liquidity levels and no major impact on financial systems.
The board of the Central Bank of the UAE met for its second session of the year, chaired by Sheikh Mansour bin Zayed Al Nahyan. Senior officials and board members attended the meeting in Abu Dhabi.
During the session, the board reviewed market conditions and noted that the country’s financial system has remained resilient amid ongoing global and regional challenges.
Resilience package
The board approved a Financial Institution Resilience Package aimed at strengthening the UAE banking sector and supporting economic activity.
The package includes five key measures. These cover access to additional liquidity, temporary relief in funding and capital requirements, and flexibility in loan classification for affected customers. Banks will also be expected to continue providing financing to support businesses and individuals.
Banking strength
The central bank highlighted strong financial indicators across the sector. UAE banks hold close to Dhs920 billion in liquidity with the regulator, including more than Dhs400 billion in reserve balances.
The UAE banking sector’s total assets stand at about Dhs5.4 trillion, supported by foreign exchange reserves exceeding Dhs1 trillion and a monetary base cover ratio of 119 percent.
Sheikh Mansour said: “The UAE’s enduring financial and economic strength is rooted in the forward-looking vision of the UAE’s leadership. The CBUAE’s precautionary policies and proactive frameworks have consistently demonstrated their effectiveness in promoting the resilience and preparedness of the financial and banking sector, while ensuring monetary and financial stability. These achievements are a testament to the sustained confidence in our system and the global competitiveness of the UAE’s national economy”.
The board said it remains ready to introduce further measures if needed to protect financial stability and support the wider economy.
tanvir@dubainewsweek.com
