The Central Bank of the United Arab Emirates (CBUAE) released its 2025 annual report, highlighting key achievements and strategic initiatives that supported national economic growth. Moreover, the report outlined measures aimed at strengthening resilience across the financial, banking, and insurance sectors in line with national development priorities.
The report said the financial system has maintained strong resilience in adapting to global shifts through proactive monetary policy, enhanced regulatory frameworks, and digital innovation. Additionally, it said these factors have reinforced the UAE’s standing as a global financial hub supported by governance and transparency standards.
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of Directors of the CBUAE, stated, “The UAE is firmly and confidently advancing its comprehensive and sustainable development model, guided by a forward-looking leadership vision that has positioned its economy to be among the most resilient and diversified economies regionally and globally.
“In light of rapid global economic transitions, the UAE has demonstrated a solid ability to maintain stability and enhance growth momentum, reflecting the strength of its economic policies and the effectiveness of its national institutions. This has strengthened its position as a global financial hub that commands the confidence of investors and international partners.”
H.H. added that the CBUAE maintains a pivotal role in safeguarding monetary and financial stability, strengthening the resilience of the financial sector, and consolidating sustainable economic growth. “The CBUAE is also leading advanced efforts to develop regulatory and supervisory frameworks, upgrade financial infrastructure, accelerate the pace of digital transformation in the financial system, and deepen partnerships and integration with regional and international financial institutions.”
H.H. noted that these policies are clearly reflected in strong macroeconomic performance, with real GDP recording an estimated growth of approximately 5.6% in 2025, driven by qualitative expansion in the non-oil sectors, which have become the primary driver of economic diversification.
As the UAE confidently advances toward broader development prospects, His Highness affirmed that the CBUAE will continue to fulfil its national mandate to preserve financial stability and reinforce confidence in the financial system, ensuring it remains a key pillar that enhances progress and prosperity, while keeping pace with the UAE’s ambitions to achieve sustainable development and a global competitive economy.
Growth supported by diversification and low inflation
The report highlighted real GDP growth of 5.6% in 2025, supported by rising contributions from non-oil sectors. Moreover, it said diversification strategies and monetary policy helped reduce inflationary pressures, with inflation stabilising at 1.3%.
Additionally, the report pointed to a sustainable outlook, forecasting continued GDP growth in 2026. As a result, it said confidence remains high in the UAE’s financial system and economic direction.
The banking sector recorded assets of AED5.4tn. Furthermore, the credit portfolio expanded 17.9%, while deposits increased 16.2%, supporting liquidity and credit demand.
The insurance sector also reported continued expansion, with gross written premiums rising 15.5% to AED75.2bn. Meanwhile, total assets increased to AED166.7bn, reinforcing the sector’s role in financial stability.
Regulatory upgrades and digital transformation
The central bank strengthened the supervisory framework by introducing additional capital buffers and adopting a neutral buffer of 0.5% to support credit continuity. Moreover, stress test results showed banks maintained capital adequacy ratios above regulatory thresholds, while asset quality improved.
The report said the central bank also integrated climate risks and IT governance into supervisory priorities. Additionally, it expanded on-site supervision and adopted supervisory technology tools and large-scale data analysis to shift toward proactive risk monitoring.
Federal Decree-Law No. (6) of 2025 was highlighted as a major regulatory milestone. Moreover, the law integrates supervision of banking and insurance sectors, strengthens operational independence, and enhances early intervention powers.
The law also expands restructuring mechanisms and reinforces depositor and insured rights protections. Additionally, it strengthens the central bank’s role in liquidity support and raises sanctions to enhance compliance and governance.
In digital transformation, the report noted growth in licensed fintech firms to 36. Furthermore, it highlighted the launch of the “Jisr” platform for international settlements and completion of the “Digital Dirham” as an official payment instrument, including the execution of initial government transactions.
The report also cited activation of the “Al Tareq” open finance platform. Moreover, it noted automation of settlement processes and development of the International Central Depository System.
The central bank also launched the “National Financial Inclusion Strategy 2026–2030” to expand access to financial services. Additionally, the report highlighted adoption of the “National Strategy for Islamic Finance and Halal Industry” to strengthen the UAE’s global competitiveness in Islamic finance.
The Emiratisation initiative exceeded the 2025 target under the “Ethraa” programme, reaching 160% of the target. Moreover, the report said training efforts were delivered in cooperation with the Emirates Institute of Finance.
Khaled Mohamed Balama, Governor of the CBUAE, stated that in line with the vision of the wise leadership and the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, the CBUAE continues to strengthen the pillars of a robust financial system characterised by the highest levels of resilience and efficiency. This is achieved through a proactive regulatory system and prudent reserve management that support sustainable growth.
He added that the year 2025 represents significant progress to enable the future of the financial sector through advanced prudential tools, dynamic policies highly responsive to changes, and leading innovation and digital transformation for a sustainable financial system. He concluded by affirming that the CBUAE continues to reinforce the UAE’s leadership as a global financial hub, shaping a financial future that reflects international confidence in its innovative economic model.
