A. SREENIVASA REDDY (ABU DHABI)
The Central Bank of the UAE (CBUAE) said the country’s financial system remains resilient and well positioned to navigate ongoing global market volatility, supported by solid growth in assets, foreign reserves and liquidity support frameworks.
Data shared by the central bank on social media showed that CBUAE’s total assets rose to Dh1.068 trillion at the end of March 2026, marking a 10.1% year-on-year increase from Dh970 billion a year earlier. Foreign assets and reserves also grew to Dh1 trillion, up 8.6% year-on-year from Dh920.8 billion, underscoring strong external buffers.
The monetary base cover ratio stood at 113.7%, indicating robust backing of the national currency and overall monetary stability. The UAE has also strengthened its liquidity safety nets through five bilateral currency swap agreements with China, Türkiye, South Korea, Bahrain, and Egypt.
The central bank said these indicators reflect the resilience of the UAE’s financial system in navigating global uncertainty.
“The continued growth in the assets and foreign reserves of the Central Bank of the UAE clearly reflects the strength of the nation’s monetary policy and the resilience of its financial system in navigating global market volatility,” it said.
The strength at the central bank level is mirrored in the broader banking sector, where total assets rose to Dh5.557 trillion at the end of March 2026, up 1.5% month-on-month and 17.7% year-on-year.
Bank deposits reached Dh3.446 trillion, recording a 1.4% monthly increase and a 17.4% annual rise, while resident lending grew to Dh2.138 trillion, up 2.5% month-on-month and 14.4% year-on-year.
According to the CBUAE, the sustained expansion of banking sector assets and deposits is “fostering a dynamic financial environment that enhances banks’ ability to finance strategic national projects and ensure ample liquidity to support sustainable investments.”
“These positive indicators are more than just figures. They represent a strong message of confidence, underscoring the readiness of the UAE’s banking sector to continue serving as a key driver of economic growth, while reinforcing long-term financial stability,” the central bank added.