UAE's banking and financial sector remains well-positioned to sustain strong performance: UBF

UAE Banking Federation (UBF), the sole representative and unified voice of UAE banks, affirmed that the banking and financial sector remains well-positioned to sustain strong performance and further reinforce the UAE’s standing as a leading global financial and banking hub. This is supported by the UAE leadership’s vision, advanced economic and financial policies, and proactive regulatory frameworks that have been strengthening the capabilities of various economic sectors to address challenges and navigate developments in the global economy and regional and international geopolitical landscape.

This came during a press conference organised by UAE Banks Federation on the outlook for growth in the UAE, the region, and the global economy, with a focus on the banking and financial sector, at Mashreq Bank Headquarters in Dubai.

AbdulAziz Al Ghurair, Chairman of UBF, said: “The UAE has, once again, demonstrated its ability to efficiently address various regional and global challenges and developments, thanks to its strategic vision and proactive approach. What we are witnessing today amid regional developments requires a continued focus on resilience, risk management, and sustainable growth.

The banking sector continues to deliver strong performance, reaffirming its resilience and readiness to deal with different conditions, supported by robust and adequate capital levels, high liquidity, and the proactive regulatory policies of the Central Bank of the UAE. The performance of UAE banks during Q1-2026 is a testament to this strength, with the sector recording solid results including profitability, liquidity, and asset quality.”

He noted that the banking sector is built on strong fundamentals that support sustainable growth, with total assets of UAE banks reaching Dhs5.4 trillion by the end of 2025. The sector’s credit portfolio grew by 17.9%, while deposits increased by 16.2%, while maintaining high levels of capital adequacy and liquidity ratios exceeding regulatory requirements and international standards.

He added: “The comprehensive proactive support package approved by the Board of Directors of the Central Bank of the UAE, chaired by His Highness Sheikh Mansour Bin Zayed Al Nahyan (Vice President of the UAE, Deputy Prime Minister, Minister of the Presidential Court, and Chairman of the Central Bank), to enhance resilience and reinforce the stability and strength of the UAE banking sector amid the exceptional circumstances affecting the region and the global economy. The package’s five pillars of the package provide additional flexibility for financial and banking institutions to utilise excess liquidity, reserve balances, and capital buffers to support customers during these exceptional conditions, contributing to strengthening the national economy.”

AbdulAziz Al Ghurair explained that the UAE economy continues to consolidate its position among the region’s most diversified and stable economies. He highlighted that the reaffirmation of the UAE’s strong sovereign credit ratings with positive outlook by leading global credit rating agencies reflects the country’s economic stability, strong fiscal position, and effective financial and institutional governance, while reinforcing international confidence in the UAE economy and supporting continued growth and expansion.

He added that the UAE continues to attract global investments and companies, with both Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) have been attracting global family offices, asset management firms, hedge funds, private banking institutions, and fintech companies in recent months. The UAE’s selection to host the World Bank Group and International Monetary Fund (IMF) Annual Meetings in Abu Dhabi in 2029, alongside hosting Sibos 2029 in Dubai, reflects growing international confidence in the UAE’s position and its pivotal role in shaping the future of the global banking and financial sector.

“The banking sector continues to operate under the direct supervision CBUAE to support long-term vision centred on stability, innovation, sustainability, and supporting customers and the national economy, thereby reinforcing the UAE’s position as a leading global financial and banking hub. UBF is committed to coordinating with relevant stakeholders and member banks to support innovation, accelerate digital transformation, strengthen cybersecurity, and advance financial technology, all of which contribute to reinforcing the UAE’s position as a global hub for modern banking and financial services,” he said.

“The banking sector continues to achieve exceptional results in Emiratisation, with UBF member banks exceeding the 2025 Emiratisation targets by 160%, following an achievement of 152.9% above target in 2024. This achievement reflects the banking sector’s commitment to developing national talent through talent development programmes, training, leadership development, and increasing participation in specialised banking roles,” he added.

AbdulAziz Al Ghurair stressed the importance of enhancing customer trust, highlighting the banking sector’s ability to continuously elevate banking standards and strengthen trust and credibility through a range of initiatives designed to meet customer needs. This contributed to maintaining the UAE’s global leadership in the Customer Trust Index (2025) for the third consecutive year.

He added that the strategic plans recently approved by the General Assembly of UBF support the continued development of the banking sector and reinforce the UAE’s leading position among the world’s foremost financial and banking centres. The strategy focuses on enhancing the competitiveness of the banking sector, reinforcing the soundness and integrity of the financial system, supporting entrepreneurs and SMEs, accelerating innovation and digital transformation, promoting sustainable finance, and strengthening regulatory alignment and compliance.