The UAE’s banking sector liquid assets reached AED 786.6B by the end of Q1 2024, marking a 28.2 per cent year-on-year rise, up AED 172.8B from AED 613.8B in Q1 2023. The Central Bank of the UAE (CBUAE) reported a 5.7 per cent quarter-on-quarter increase, equivalent to AED 42.7B, from AED 743.95B at the end of Q4 2023. These assets represented 18.8 per cent of total banking assets, valued at AED 4.185T by Q1 2024, slightly up from 18.6 per cent in Q4 2023.
CBUAE noted a robust capital adequacy ratio of 18 per cent by Q1 2024, a small rise from 17.9 per cent in Q4 2023. This exceeds the 13 per cent minimum requirement, which includes a 2.5 per cent capital conservation buffer and 8.5 per cent minimum Tier 1 capital under Basel III, in place since 2017.
Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister, praised the CBUAE’s role in bolstering the UAE’s financial resilience in 2023. In the CBUAE’s 2023 Annual Report, he highlighted its role in maintaining monetary stability amid global economic shifts. The UAE saw 3.6 per cent GDP growth in 2023, expected to rise to 3.9 per cent in 2024, with non-oil sector growth at 5.4 per cent.
The financial sector saw 11.1 per cent growth in 2023, exceeding AED 4T in assets. The banking system remained well-capitalised, with strong profitability and liquidity. Sheikh Mansour commended the CBUAE’s efforts in driving AED 1T in sustainable finance by 2030 and addressing climate risks, while also noting its progress in digital transformation, including Al Etihad Payments and preparations for the Central Bank Digital Currency (CBDC).