Authorities in the United Arab Emirates said the country’s financial system continues to operate normally despite current market tensions linked to ongoing developments in the Middle East. Moreover, regulators indicated that banks, financial institutions and insurers across the country remain fully operational without service disruptions.
Strong Capital and Liquidity Position
Central Bank of the United Arab Emirates Governor Khaled Mohamed Balama said the sector remains resilient and well positioned to navigate evolving regional developments.
“The UAE’s banking and financial sector continues to demonstrate the highest levels of resilience and stability,” Balama said. “Banks, financial institutions, and insurance companies across the country are operating normally and continue to deliver their services to customers and the public efficiently and without disruption nationwide.”
Moreover, financial indicators show the sector entered the current period of uncertainty from a position of strength. The banking system maintains a capital adequacy ratio of around 17 percent, while the Liquidity Coverage Ratio stands above 146.6 percent. Both levels remain well above international regulatory thresholds recommended by global supervisory bodies.
Additionally, balance sheet expansion across the sector remains significant. Total assets in the UAE banking system have exceeded AED5.42 trillion, reflecting the scale of financial institutions and their capacity to sustain economic activity during periods of volatility.
Financial Infrastructure Operating Normally
Authorities also confirmed that digital banking platforms, payment networks and financial infrastructure continue to function smoothly across the financial system. Furthermore, advanced technological frameworks support secure and uninterrupted financial services nationwide.
Balama said these systems remain fully operational.
“I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability,” he said. “These systems are supported by advanced operational and technological frameworks that ensure the seamless, secure, and uninterrupted functioning of banking and financial services.”
Ongoing Monitoring and Risk Management
Regulators continue to monitor financial stability indicators and maintain coordination with financial institutions across the country. Additionally, supervisory authorities conduct stress testing and risk assessments to ensure operational readiness under different economic scenarios.
Balama said the regulator continues to monitor developments closely.
“The Central Bank of the UAE continues to maintain close coordination with relevant authorities and financial institutions to closely monitor developments, ensuring full operational readiness and the uninterrupted provision of banking and financial services across the country,” he said.
He added that regulators continue to track liquidity and financial stability indicators while maintaining policy tools designed to support confidence in the financial system during periods of uncertainty.
“We continuously monitor key indicators of financial stability and liquidity across the banking and financial sector,” he said. “We also conduct regular assessments and stress-testing exercises to ensure the continued soundness and resilience of the financial system.”
Balama reaffirmed the regulator’s commitment to maintaining stability across the financial system while supporting long-term economic development.
“I reaffirm the Central Bank of the UAE’s unwavering commitment to closely monitor developments, maintain full operational readiness, and provide the necessary support to safeguard the achievements realized over more than five decades of progress and prosperity,” he said.
