ع
The Central Bank of the UAE detailed strong economic outcomes in its annual report for 2025 that was issued on April 9, 2026, with real GDP rising 5.6 percent on the back of non-oil activity in manufacturing, financial services, construction and real estate. A World Bank assessment placed non-oil growth at 6.1 percent for the year, outpacing the hydrocarbon sector’s 4.1 percent expansion and helping the overall economy reach an estimated $571 billion. Inflation averaged 1.3 percent, down from prior levels, after monetary policies eased pressure from food and transport costs while the report projected further GDP gains in 2026.
Banking sector assets stood at AED 5.4 trillion, or about $1.5 trillion, securing the industry’s regional lead after an increase of more than AED 780 billion from the previous year, according to the CBUAE document. Credit portfolios expanded 17.9 percent and customer deposits grew 16.2 percent, enabling the system to meet rising demand in a buoyant business environment. The central bank’s earlier financial stability review had put 2024 banking assets at AED 4.6 trillion, illustrating sustained balance-sheet growth that kept capital adequacy well above regulatory minima.
Insurance gross written premiums rose 15.5 percent to AED 75.2 billion while sector assets increased to AED 166.7 billion, the 2025 report stated. Those gains built on 2024 totals of AED 144.4 billion in assets recorded in the CBUAE’s financial stability publication, reinforcing the industry’s contribution to economic risk management. Stress tests cited in the annual document confirmed banking and insurance resilience against potential shocks, including those linked to climate factors now integrated into supervisory frameworks.
The CBUAE strengthened oversight by adding capital buffers, including a 0.5 percent neutral countercyclical buffer, and expanded use of supervisory technology together with big-data analytics for forward-looking risk assessment. On-site inspections increased as climate risks and information-technology governance became core supervisory priorities. Federal Decree-Law No. (6) of 2025 merged banking and insurance regulation under the central bank, granting it enhanced powers for early intervention, depositor protection and liquidity support while raising penalties to align with global standards.
Digital initiatives advanced on several fronts, with the number of licensed fintech firms reaching 36 and the Jisr platform enabling faster cross-border payments, the report noted. The Digital Dirham central bank digital currency completed its pilot phase and entered initial government applications while the Al Tareq open-finance platform went live and work continued on the International Central Depository System. The central bank also launched the National Financial Inclusion Strategy covering 2026 through 2030 to expand access and literacy alongside a parallel national plan for Islamic finance and the halal industry.
Emiratization efforts in the financial sector exceeded the 2025 target under the Ethraa program by 160 percent through targeted training aligned with international benchmarks, according to the annual review. Khaled Mohamed Balama, governor of the CBUAE, said the bank remains dedicated to reinforcing the foundations of a strong financial system defined by high efficiency and resilience. He explained that this is achieved through a proactive regulatory framework and cautious reserve management intended to facilitate sustainable growth following the vision of the leadership and the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan.
