The Central Bank of the United Arab Emirates (CBUAE) has published its 2024 Financial Stability Report, offering a comprehensive analysis of the nation’s financial system amid ongoing global economic challenges. The report confirms that the UAE’s banking sector remains strong and resilient, underpinned by solid capital and liquidity buffers, enhanced asset quality, and sustained growth.
Key Highlights from the 2024 Report
- Over 4% real GDP growth in 2024, driven by non-oil sector expansion
- Banking sector maintains high capital and liquidity levels, surpassing minimum requirements
- NBFI sectors show strong performance, with the insurance sector growing 21.4%
- Macroprudential tools and cybersecurity measures further enhanced
- Digital transformation accelerates, including FinTech, instant payments, and CBDC development
Stable and Resilient Financial Sector
Despite heightened global uncertainty, financial stability risks in the UAE remained broadly contained, thanks to sound economic fundamentals, effective risk management practices, and prudent monetary policy.
The CBUAE’s stress testing confirmed the ability of UAE banks to withstand adverse macroeconomic scenarios, continue extending credit, and maintain high capital and liquidity levels. This resilience underlines the sector’s readiness to absorb shocks while supporting economic growth.
Coordinated Oversight and Strategic Governance
A key development in 2024 was the operational launch of the UAE Financial Stability Council, chaired by His Highness Sheikh Mansour bin Zayed Al Nahyan. The council plays a central role in identifying systemic risks, coordinating among financial stakeholders, and enhancing policy responsiveness to emerging threats.
Growth Across Non-Bank Financial Institutions (NBFIs)
- Insurance sector: Grew by 21.4%, reaching AED 64.8 billion in gross written premiums, with adequate solvency margins
- Finance companies: Maintained strong capitalisation and improved liquidity
- Money exchange firms: Demonstrated continued operational resilience
Advancing Financial Innovation and Inclusion
The report also highlights the UAE’s leadership in digital finance:
- Jaywan: Launch of the domestic card scheme to enhance payment sovereignty
- Aani Instant Payment Platform: Wider adoption for real-time transactions
- Digital Dirham: Ongoing progress in the national central bank digital currency (CBDC)
The UAE’s increased uptake of FinTech, artificial intelligence (AI), and data analytics continues to modernize banking services, boosting efficiency and expanding financial inclusion.
Outlook Remains Positive
The CBUAE anticipates that the UAE financial system will remain on a stable and upward trajectory. Real GDP is forecasted to grow by 4.4% in 2025 and 5.4% in 2026, driven by diversification, digital innovation, and continued banking sector strength.
Leadership Commentary
H.E. Khaled Mohamed Balama, Governor of the CBUAE, stated:
“The UAE maintained strong economic and financial conditions in 2024, despite rising global risks. Our performance reflects the strength of our banking system and our commitment to building a resilient financial ecosystem aligned with the UAE’s development vision.”
