The Central Bank of the United Arab Emirates (CBUAE) has released its 2025 annual report, detailing significant economic growth and a series of strategic initiatives aimed at reinforcing the nation’s position as a global financial hub. The report points to a resilient financial system bolstered by proactive monetary policies, a strong banking sector, and a decisive push into digital finance, including the official launch of the Digital Dirham.
Quick Facts
- 5.6% real GDP growth recorded in 2025.
- Banking sector assets reached AED 5.4 trillion.
- Digital Dirham launched as an official payment instrument.
A Diversified Economy Beyond Oil
The report highlights an exceptional economic performance, with the UAE’s real GDP growing by 5.6% in 2025. This expansion was largely driven by the increasing contribution of non-oil sectors, reflecting the success of the country’s economic diversification strategies. Proactive monetary policies have also helped curb inflationary pressures, bringing the rate down to a stable 1.3%.
The outlook for 2026 remains positive, with the CBUAE projecting continued growth, signaling high confidence in the UAE’s financial system.
Banking Sector Hits AED 5.4 Trillion in Assets
The UAE’s banking sector has demonstrated regional leadership, with total assets climbing to AED 5.4 trillion. This was supported by a 17.9% growth in the credit portfolio and a 16.2% rise in deposits, indicating the sector’s capacity to meet growing credit demand.
The insurance sector also saw substantial growth, with gross written premiums increasing by 15.5% to AED 75.2 billion and total assets reaching AED 166.7 billion. Stress test results confirmed the banking sector’s ability to withstand risks, with capital adequacy ratios remaining well above regulatory requirements.
Digital Dirham and Fintech Take Center Stage
A key focus of the report is the CBUAE’s leadership in digital transformation. The number of licensed fintech companies in the UAE grew to 36. A significant milestone was the completion and launch of the “Digital Dirham” as an official payment instrument, with its first government transactions already executed.
Other key digital initiatives include the launch of the “Jisr” platform for international settlements and the activation of the “Al Tareq” open finance platform. The CBUAE has also adopted “Supervisory Technology” (SupTech) tools and large data analysis to shift towards a more proactive risk assessment model.
New Law Integrates Banking and Insurance Oversight
The introduction of Federal Decree-Law No. (6) of 2025 marks a pivotal change, integrating the supervision of the banking and insurance sectors under one framework to enhance financial stability. The new law grants the CBUAE proactive powers for early intervention and restructuring, strengthening protections for depositors and the insured while increasing sanctions to ensure higher compliance and governance.
His Excellency Khaled Mohamed Balama, Governor of the CBUAE, stated: “The year 2025 represents a significant progress to enable the future of the financial sector through advanced prudential tools, dynamic policies that are highly responsive to changes, and leading innovation and digital transformation for a sustainable financial system.”
He added: “We continue to reinforce the UAE’s leadership as a global financial hub, shaping a financial future that reflects international confidence in our innovative economic model, ensuring the enhancement of sustainable growth and its future prospects.”
About the Central Bank of the UAE (CBUAE)
The Central Bank of the UAE is the primary regulatory body of the banking and financial system in the United Arab Emirates. It is responsible for formulating and implementing banking, credit, and monetary policies, maintaining the country’s reserves of gold and foreign currencies, and acting as the “bank of banks” within the UAE. The CBUAE is also leading the nation’s strategic push into financial technology and digital currencies.
Source: Zawya
