CBUAE 2025 report highlights exceptional growth in UAE financial system

ABU DHABI, 9th April, 2026 (WAM) — The Central Bank of the United Arab Emirates (CBUAE) issued today its 2025 annual report, highlighting the achievements and strategic initiatives that have been key pillars in driving national economic growth and strengthening the resilience of the financial, banking, and insurance sectors, in line with the UAE’s strategic objectives and future aspirations.

The report underscores the financial system’s high resilience in adapting to global developments through proactive monetary policies, advanced regulatory frameworks, and innovative digital solutions. These factors have cemented the UAE’s position as a leading global financial hub based on the highest standards of governance and transparency.

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.

The report highlights an exceptional economic performance, with real GDP growth of 5.6% in 2025. This growth was supported by the growing contribution of non-oil sectors, as well as the success of economic diversification strategies and proactive monetary policies in reducing inflationary pressures to stable levels of 1.3%, further supporting the competitiveness of the national economy. The report also reflects a sustainable financial outlook, emphasising the continued growth of real GDP in 2026, which underscores high confidence in the UAE’s financial system.

The banking sector achieved regional leadership with assets valued at AED5.4 trillion, supported by a 17.9% growth in the credit portfolio and a 16.2% increase in deposits, underscoring the sector’s solvency and its high ability to meet growing credit demand in a stimulating business environment. The insurance sector also continued its qualitative growth path with a remarkable increase in gross written premiums by 15.5%, reaching AED75.2 billion, in parallel with the increase in total assets to AED166.7 billion. This reinforces the important role of the sector in the financial stability system and in safeguarding the UAE’s economic gains.

In the field of developing supervisory and regulatory systems, the CBUAE has strengthened the financial system through additional capital buffers and the adoption of a neutral buffer of 0.5% to ensure the continuity of credit. Stress test results proved the efficiency of the banking sector to withstand risks, with capital adequacy ratios remaining above regulatory thresholds and a notable improvement in asset quality in accordance with the highest international standards.

The CBUAE further strengthened its regulatory framework by integrating climate risks and IT governance into its supervisory priorities, while intensifying on-site supervision to ensure the highest levels of compliance. These efforts were underpinned by the adoption of “Supervisory Technology” (SupTech) tools and large data analysis, enabling a transition to proactive risk assessment and enhancing the digital readiness and global competitiveness of the financial sector.

Federal Decree-Law No. (6) of 2025 regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business represents a qualitative transition by integrating the supervision of the banking and insurance sectors to enhance financial stability and operational independence. The new law gives the CBUAE proactive powers for early intervention, restructuring, and protecting the rights of depositors and insured people, while reinforcing its role as a market maker and a last resort for liquidity. This is in addition to increasing sanctions to ensure the highest levels of compliance and governance in line with global standards.

In the field of digital transformation, the CBUAE is leading a fundamental transformation in the financial landscape through strategic initiatives that have positioned the UAE at the forefront of global innovation. These achievements include the growth of licensed fintech companies to 36 and the launch of the “Jisr” platform for international settlements, in conjunction with the completion of the “Digital Dirham” as an official payment instrument with an advanced brand identity and the execution of its first government transactions. The “Al Tareq” open finance platform has been activated, settlement processes have been automated, and the International Central Depository System has been developed, confirming the CBUAE’s commitment to shaping a sustainable financial future built on future solutions.

As part of promoting financial inclusion and financial health, the CBUAE launched the “National Financial Inclusion Strategy 2026–2030” to ensure access to high-quality financial services for all segments, while promoting a culture of financial health among individuals and businesses. In parallel, the UAE has confirmed its position as a global benchmark for Islamic finance through the adoption of the “National Strategy for Islamic Finance and Halal Industry”, supported by a robust legislative framework that contributes to enhancing the UAE’s global competitiveness in Islamic finance.

The Emiratisation initiative achieved both a qualitative and quantitative milestone that exceeded the targets of the “Ethraa” programme in the financial sector, reaching 160% of the 2025 target. This includes empowering UAE nationals to assume strategic positions through academic and technical training aligned with international best practices, delivered in collaboration 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.