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The Central Bank of the United Arab Emirates issued a statement on March 5 2026 affirming the strength of the country’s banking sector amid regional tensions. Governor Khaled Mohamed Balama highlighted that banks and financial institutions have maintained operations without any disruption to customer services nationwide. According to the central bank the sector benefits from strong capital and liquidity positions built over more than five decades. The governor noted the system’s foundations in sound governance diversified activities and proactive risk management.
Balama pointed to specific performance indicators that underscore this resilience the central bank reported. The capital adequacy ratio stands at 17 percent while the liquidity coverage ratio exceeds 146.6 percent both above international benchmarks. Total assets in the banking and financial sector have grown to more than AED 5.42 trillion. These metrics reflect the institutions’ ability to withstand various economic conditions a central bank assessment found.
The statement referenced the banking infrastructure and payment systems continuing to function with full efficiency. “I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability” Balama said. Financial institutions operate under advanced frameworks aligned with international standards for risk management and business continuity according to the regulator.
The Central Bank of the UAE continues to monitor financial stability indicators and perform stress testing across the sector as part of its ongoing supervisory role. It maintains close coordination with relevant authorities and financial institutions to ensure uninterrupted services. Balama stated that the regulator holds a range of prudential and monetary policy tools to safeguard stability when necessary.
This affirmation builds on earlier data from the Central Bank of the UAE’s Financial Stability Report for 2024 which showed banking assets at AED 4.6 trillion at the end of that year with 12 percent annual growth. Projections in the report indicated positive economic outlook with GDP growth expected at 4.4 percent in 2025. S&P Global Ratings indicated in a January 2026 analysis that UAE banks would maintain strong capitalization levels into 2026.
The insurance sector also formed part of the governor’s reassurance with the central bank noting its normal operations alongside banks. Earlier Central Bank figures placed insurance sector assets at AED 144.4 billion in 2024 with a solvency capital ratio of 232 percent. The March statement emphasized the central bank’s commitment to monitoring developments and providing support to maintain the progress achieved over 53 years.
