The UAE’s banking system achieved exceptional strides in 2024, with total banking sector assets growing 12 percent to AED4.56 trillion ($1.24 trillion). In its latest annual report, the Central Bank of the UAE (CBUAE) revealed that this growth has placed the UAE at the forefront in the Middle East in terms of banking assets, reinforcing its well-established foundations with strong fundamentals, reflected in high capitalization levels, strong profitability, sufficient liquidity and stable financial reserves.
The report also revealed that the insurance sector recorded a notable increase in total gross written premiums, reaching a value of AED64.8 billion last year.
“Our transformative initiatives and projects, launched during 2024, have contributed to enhancing the efficiency and competitiveness of the financial sector, building a more resilient and sustainable financial system,” stated Khaled Mohamed Balama, Governor of the CBUAE.
UAE’s economy to grow 4.7 percent in 2025
This growth in the UAE’s banking sector coincided with strong economic performance. The nation’s real GDP achieved a growth rate of 3.9 percent in 2024, driven by the strong performance of the oil sector and other non-oil sectors. Non-oil foreign trade of goods also increased by 13.8 percent, exceeding AED2.8 trillion, supported by the prominent role of the comprehensive economic partnership agreements.
The CBUAE forecasts an acceleration of growth to 4.7 percent in 2025, reflecting the resilience of the national economy and its ability to achieve targeted diversification.
CBUAE raises capital reserves
Last year, the CBUAE supported capital buffers in the banking sector by increasing capital reserves as a proactive step to address cyclical fluctuations, thereby enhancing long-term financial stability and contributing to building a strong and resilient banking system capable of adapting to global economic changes.
The CBUAE also strengthened stress tests and conducted assessments of potential risks to the banking sector due to climate change.
As a result of its endeavour to establish an effective framework for combating money laundering and terrorist financing, the central bank’s efforts, in cooperation and coordination with federal and local authorities, contributed to the UAE’s exit from the Financial Action Task Force’s (FATF) jurisdictions under “enhanced monitoring process.”
UAE advances to third place in global Islamic finance rankings
In a bid to achieve its vision of being among the top central banks globally in promoting monetary and financial stability, the CBUAE also made progress in implementing its innovative plans and initiatives, which culminated in the central bank winning the Leading Federal Entity Award at the Mohammed bin Rashid Government Excellence Award and the UAE’s advancement in global Islamic finance rankings from sixth to third place.
The country also earned the “Pioneering Model” title according to the Global Cybersecurity Index.
CBUAE launches Jaywan and Aani
To support the Financial Infrastructure Transformation (FIT) program, the CBUAE launched last year the UAE’s domestic card scheme “Jaywan” and the instant payment platform “Aani”.
It also launched the world’s first Open Finance regulation, as well as the licensing and supervision system for virtual stablecoins to enhance financial stability and keep pace with emerging changes in global markets, in addition to the electronic “Know Your Customer” platform to provide a secure financial infrastructure for verifying customer identities.
The CBUAE also launched “Sanadak”, the MENA region’s first independent ombudsman unit, aimed at resolving banking and insurance disputes efficiently and quickly and enhancing consumer confidence.
Read: UAE bonds and sukuk surge to $309.4 billion by Q1 2025, up 8.3 percent YoY
Licensed financial institutions exceed Emiratization targets
Emiratization topped the CBUAE’s strategic priorities in 2024, embodying the vision and directives of the wise leadership. Licensed financial institutions exceeded their targets, achieving a growth of 152.9 percent by employing 2,866 UAE nationals. The number of UAE nationals in vital positions also increased to 7,886, representing a growth of 20.22 percent compared to the previous year.
In 2024, the CBUAE also launched the development phase of the “Sustainable Monetary Sukuk” program, with the first phase focusing on studying economic feasibility and market size.
“We will continue our diligent work to strengthen the UAE’s position as a global financial hub, and build a prosperous future for the financial sector, reflecting the world’s confidence in our economy and our ability to innovate and excel, and affirming our commitment to achieving sustainable development for future generations,” added Balama.
