A. SREENIVASA REDDY (ABU DHABI)
The UAE banking sector recorded robust growth across key balance sheet indicators in 2025, with total assets of banks operating in the country rising to Dh5.3399 trillion at the end of December 2025 compared with Dh4.5591 trillion at the end of December 2024, representing an annual increase of 17.1%, while on a quarterly basis assets grew 2.7% in the fourth quarter of 2025.
The Central Bank of the UAE (CBUAE) has released its monetary, banking, and financial markets data for the fourth quarter of 2025.
According to the CBUAE data, gross credit increased to Dh2.5703 trillion at the end of December 2025 from Dh2.1808 trillion at the end of December 2024, marking a year-on-year growth of 17.9%, with a quarterly expansion of 3.7% in Q4 2025.
Total deposits with banks reached Dh3.3070 trillion by the end of December 2025 compared with Dh2.8470 trillion a year earlier, reflecting an annual increase of 16.2%, while deposits rose 3.8% on a quarterly basis in Q4 2025.
Of the total deposits, resident deposits stood at Dh3.0092 trillion at the end of December 2025, up 15.7% year-on-year, while non-resident deposits reached Dh297.8 billion, registering a stronger annual increase of 21.2%.
Aggregate capital and reserves of banks increased to Dh598.3 billion at the end of December 2025 from Dh533.7 billion at the end of December 2024, representing a 12.1% annual rise, while quarterly growth in Q4 2025 stood at 5.0%.
The Capital Adequacy Ratio stood at 17.1% at the end of December 2025 compared with 17.8% at the end of December 2024, remaining well above the minimum regulatory requirement of 13.0%, including the Capital Conservation Buffer and Tier 1 requirements. Meanwhile, the Tier 1 ratio stood at 15.9% compared with 16.4% a year earlier, and the Common Equity Tier 1 capital ratio stood at 14.4% compared with 14.7% at the end of December 2024.
In financial markets, the Abu Dhabi Securities Exchange index recorded an annual increase of 6.3% in 2025, although its quarterly average declined by 2.1% in the fourth quarter, with the quarterly average market capitalisation settling at Dh3.104 trillion in Q4 2025.
Meanwhile, the Dubai Financial Market index posted a stronger annual gain of 29.5% in 2025 despite a quarterly average decline of 0.7% in Q4, while the quarterly average market capitalisation on DFM stood at Dh980 billion at the end of December 2025.