Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE’s banking and financial sector remains resilient and stable, with institutions across the country operating normally and continuing to provide services without disruption, according to the Central Bank of the UAE (CBUAE).
In a press statement issued on Thursday, Khaled Mohamed Balama, Governor of the CBUAE, said the sector maintains strong financial fundamentals, with the capital adequacy ratio standing at 17% and the liquidity coverage ratio exceeding 146.6% – both significantly above international regulatory requirements.
Total assets of the UAE’s banking and financial sector now exceed Dh5.42 trillion, reflecting the scale and financial strength of institutions operating in the country and their capacity to support economic activity under a range of conditions.
“Despite the successive geopolitical developments witnessed across the region during this period, the Central Bank and the UAE’s banking and financial sector have consistently demonstrated a strong capacity for resilience, adaptability, and sustained growth,” Balama said.
“This has further reinforced the UAE’s position as a trusted and secure destination and a leading financial hub at both the regional and global levels.”
According to the CBUAE, the UAE’s banking systems, payment infrastructure and financial networks continue to function with full efficiency and stability, supported by advanced technological and operational frameworks that ensure seamless and secure services.
Balama added that financial institutions in the UAE apply advanced risk management and business continuity frameworks aligned with international best practices, strengthening their ability to respond to emerging challenges.
The Central Bank also maintains close coordination with relevant authorities and financial institutions to monitor developments and ensure the uninterrupted provision of banking services across the country.
Balama said the regulator continuously monitors financial stability indicators, including liquidity levels across the sector, and conducts regular stress tests to ensure the resilience of the financial system.
“The Central Bank also maintains a comprehensive framework of prudential and monetary policy tools that enables it to take timely and appropriate action whenever necessary to safeguard financial stability and reinforce confidence in the banking and financial sector,” he said.
Balama reaffirmed the Central Bank’s commitment to maintaining operational readiness and safeguarding the achievements of the UAE’s financial sector, which he said has built a legacy of resilience and stability over more than five decades.
UAE banks are well-positioned to withstand potential regional geopolitical shocks, according to an expert.
“Strong capital adequacy, healthy liquidity buffers, and disciplined regulatory oversight underpin the sector’s resilience,” said Kapil Sharma, Senior Vice President of Sales at Continental International Group, in an interview with Aletihad.
Banks Post Record Profitability
In 2025, the UAE’s banking sector delivered a strong performance, with leading institutions reporting record profits, reflecting robust lending activity, diversified revenue streams, and resilient business momentum.
First Abu Dhabi Bank (FAB) led the pack, reporting a net profit of Dh21.11 billion, up 24% from 2024, while profit before tax rose 27% to Dh25.2 billion.
The bank credited growth in non‑interest income and broad-based business expansion for the surge.
Emirates NBD reported a record profit before tax of Dh29.8 billion and net profit of Dh24 billion, supported by strong loan growth and balance sheet expansion across domestic and select international markets.
Abu Dhabi Islamic Bank (ADIB) also posted solid results, with profit before tax of Dh8.1 billion and net profit of Dh7.1 billion, up 18% and 16% year-on-year respectively, driven by rising financing activity and higher fee income.
Emirates Islamic recorded a profit before tax of Dh3.9 billion, a 26% increase compared with 2024, while net profit reached Dh3.3 billion. The bank highlighted strong demand for Islamic finance products and continued revenue diversification.
Mashreq Bank rounded out the sector’s top performers, posting a profit before tax of Dh8.3 billion, fuelled by 32% year-on-year loan growth and a 27% increase in deposits.
Positive Outlook
Sharma noted that the UAE’s diversified economic base enables broader and more balanced lending compared with other countries in the region.
The outlook remains broadly positive, he added, but external factors such as global interest rate shifts, geopolitical developments and sector-specific exposures like real estate will require monitoring.
“The UAE’s ongoing economic diversification, strong fiscal position, and proactive regulatory environment are likely to continue supporting the stability and performance of the banking sector in the months ahead,” Sharma said.
