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Central Bank Governor Khaled Balama issued a statement on March 5 2026 to confirm that banks financial institutions and insurance companies across the UAE were functioning without disruption even as the country faced retaliatory attacks from Tehran following US and Israeli strikes on Iran the previous weekend. According to the governor the sector maintained capital adequacy of 17 per cent and a liquidity coverage ratio exceeding 146.6 per cent both well above thresholds recommended by international supervisory bodies. Total assets of the UAE banking and financial sector surpassed Dh5.42 trillion or about $1.47 trillion at the time reflecting its capacity to meet obligations and sustain economic activity under various conditions Balama added in the announcement. “I reaffirm that the UAE’s banking systems payment systems and national financial infrastructure continue to operate with full efficiency and stability” the Central Bank Governor said.
The statement addressed recent digital service interruptions that had affected several major lenders including Abu Dhabi Commercial Bank First Abu Dhabi Bank Emirates NBD and Emirates Islamic earlier that week. Abu Dhabi Commercial Bank restored its retail mobile banking and contact centre operations after a 48-hour outage and reported that customer data accounts and system security remained uncompromised at all times according to the lender. Central Bank of the UAE data later placed banking assets at Dh5.4725 trillion by the end of February 2026 with total credit reaching Dh2.6306 trillion and deposits climbing to Dh3.4 trillion as lending momentum extended into the first quarter.
Financial and banking institutions in the UAE employ advanced frameworks for risk identification management and business continuity which Balama said further enhance their agility and resilience in addressing potential challenges. The regulator noted that it continuously monitors indicators of financial stability and liquidity while performing regular assessments and stress-testing exercises to safeguard the system. S&P Global Ratings forecast in January 2026 that UAE banks would sustain stable financial profiles throughout the year supported by strong credit growth and robust fundamentals according to the ratings agency’s analysis.
The Central Bank of the UAE possesses prudential and monetary policy tools that allow timely intervention whenever required to reinforce confidence in the banking sector Balama stated. This monitoring proved relevant as regional tensions linked to the Iran conflict prompted concerns over potential deposit outflows and rising non-performing loans across Gulf institutions a March 2026 assessment from S&P Global estimated. By late March the Central Bank introduced a resilience package that temporarily adjusted liquidity requirements and released capital buffers backed by foreign exchange reserves exceeding Dh1 trillion according to Alvarez & Marsal research on the measures.
Subsequent reporting from The National in late March found bank executives describing the UAE sector as holding ample liquidity with no material impact observed from the regional conflict to date. Standard Chartered’s head of global banking in Dubai told the publication that higher interest rates and oil price volatility had not translated into significant loan defaults or operational strain for local institutions. Central Bank of the UAE figures for the first quarter of 2026 showed the capital adequacy ratio at 16.8 per cent still comfortably above the 13 per cent regulatory minimum a Central Bank report confirmed.
The UAE banking sector’s total assets continued to expand in early 2026 even amid geopolitical uncertainties with Moody’s and S&P maintaining stable outlooks on the sovereign rating that underpins the financial system. Balama emphasised that the combination of strong buffers and technological frameworks ensured seamless secure services for customers nationwide. Later quarterly data from the Central Bank highlighted sustained growth in deposits and credit while non-performing loan ratios remained low by historical standards.
