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The Dh6.2 billion relief package approved by the UAE Central Bank for customers affected by the Iran war since March amounts to just 3 per cent of the Dh200 billion extended during the Covid-19 crisis, according to UAE Banks Federation chairman Abdul Aziz Al Ghurair. Only 65,000-plus customers sought assistance compared with 1.5 million entities during the pandemic, he said during a media briefing covered by The National. Al Ghurair, who also chairs Mashreq Bank, attributed the smaller scale to improved preparedness across government, emergency services and the banking sector. He described the current support as meaningless in the context of the overall economy.
Al Ghurair noted that banks had posted some of the strongest quarterly results in recent history despite the conflict, although projections for certain sectors required adjustment. Demand across the financial system remained robust while capital outflows proved negligible, he added. The federation chairman stated that inflows continued uninterrupted and that the central bank provided no direct funding comparable to Covid-era measures. These outcomes demonstrate the resilience built into the UAE financial sector since the earlier global health crisis.
Central bank figures released in early May showed that 60,559 individual customers, 4,335 small and medium-sized enterprises and 485 larger companies had taken up loan deferrals, interest relief or fee waivers. Hospitality, transport and tourism businesses accounted for the largest share of beneficiaries, the regulator reported. The resilience package, which includes reduced liquidity and capital requirements, was introduced on March 18 and is scheduled to remain in force until the end of June, when authorities will review whether an extension is warranted.
The UAE Central Bank also granted temporary permission for banks to host certain data outside the country after Iranian attacks damaged regional data centres, Al Ghurair explained. The move provides contingency arrangements that lenders must activate through third-party contracts and dedicated facilities, a process that is neither quick nor inexpensive. Weekly monitoring ensures data can be repatriated promptly once conditions stabilise, he said. The relief addresses regulatory requirements that normally mandate in-country storage of customer and transaction records.
Al Ghurair expressed confidence that a surge in economic activity during the second half of 2026 could still allow the UAE to approach its pre-war growth estimate of 5.6 per cent. A World Bank assessment published in 2026 projected that the conflict would slow expansion to 2.4 per cent for the year before a rebound to 4.1 per cent in 2027. International Monetary Fund data places 2026 growth at 3.1 per cent. The federation chairman argued that even a revised outcome above 4 per cent would still outpace expansion in the United States and European economies.
Inflation is forecast to remain at 2.5 per cent by year-end despite higher prices for some commodities including fuel, according to Al Ghurair. Rent carries the largest weight in the consumer basket and its decline is expected to offset increases elsewhere, he noted. The banking sector’s ability to absorb the shock without significant disruption underscores the structural improvements implemented after the Covid-19 experience, the chairman added.
