The Central Bank of the United Arab Emirates (CBUAE) has released its 2024 Financial Stability Report, offering a detailed assessment of the nation’s financial system amid growing global challenges and risks.
The report confirms that the UAE’s banking sector remains robust, underpinned by strong capital and liquidity buffers, improved asset quality, and steady growth across key indicators.
According to the CBUAE, financial stability risks in the UAE have remained broadly contained and unchanged, thanks to the country’s solid economic fundamentals, prudent policymaking, and effective risk management practices.
The report reviews a broad spectrum of macroeconomic trends, both domestic and global, alongside financial market developments, sectoral performance, and regulatory updates.
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A particular emphasis is placed on system resilience and emerging risks facing the financial landscape.
CBUAE reaffirmed its commitment to proactive risk monitoring, fostering innovation, and maintaining transparency. These efforts, in cooperation with domestic and international stakeholders, aim to further solidify the UAE’s standing as a leading global financial hub.
Economic data showcased in the report highlights the financial system’s contribution to national resilience. The UAE’s real GDP grew by 4 percent in 2024, driven by sustained momentum in the non-oil sector — an increasingly vital pillar of the country’s diversification strategy.
The GDP outlook remains strong, with growth projected at 4.4 percent in 2025 and 5.4 percent in 2026.
Excellence in leadership
Khaled Mohamed Balama, governor of the CBUAE, said: “The UAE maintained strong economic and financial conditions in 2024, despite growing economic challenges and increasing global risks, supported by national economic growth and the banking system’s robustness and resilience.
“At CBUAE, we are committed to steadily progressing towards achieving the vision of our wise leadership, the nation’s development plans, and our strategic objectives by developing the financial system’s regulatory and supervisory framework to ensure sustainable resilience, enhance financial and economic stability, and drive growth momentum and prosperity in the UAE.”
In a major institutional development, 2024 marked the operational launch of the UAE Financial Stability Council.
Chaired by H.H. Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, Chairman of the Central Bank, and Chairman of the Financial Stability Council, the body plays a crucial role in enhancing coordination among key stakeholders, overseeing systemic risk, and streamlining policy responses.
Throughout the year, the CBUAE strengthened its regulatory and supervisory frameworks. This included the rollout of new macroprudential tools, enhanced cybersecurity measures, advances in sustainable finance, and an expanded assessment of climate-related financial risks in line with global best practices.
Solid economic fundamentals
Comprehensive stress tests conducted in 2024 confirmed that UAE banks remain well-positioned to withstand macroeconomic shocks. Even under hypothetical adverse conditions, banks demonstrated their ability to continue lending and maintain capital and liquidity levels well above minimum requirements, underscoring the resilience of the sector.
Beyond banking, the UAE’s non-bank financial institutions (NBFIs) also reported solid performance. The insurance sector remained sound, with a solvency ratio above regulatory thresholds and 21.4 percent growth in gross written premiums, totaling AED 64.8 billion — further safeguarding policyholders’ interests.
Finance companies showed improved liquidity and maintained adequate capitalization, while money exchange businesses demonstrated continued operational stability.
The year also saw rapid progress in digital transformation. Fintech adoption, digital payment usage, and integration of artificial intelligence (AI) and data analytics all gained momentum.
The CBUAE played a pivotal role in this transition by advancing the national payments infrastructure, including the launch of the Domestic Card Scheme “Jaywan”, the broader use of the “Aani” instant payment platform, and ongoing development of the central bank digital currency (CBDC), “Digital Dirham”.
Looking ahead, the CBUAE expects the outlook for the UAE’s financial system to remain positive, supported by sound economic fundamentals, disciplined economic governance, and the continued evolution of a resilient, innovative, and transparent financial ecosystem.
