The Central Bank of the UAE (CBUAE) has revealed its financial stability report. So, it demonstrates a bright UAE economic growth through 2026. Moreover, the real GDP is expected to grow 4.4% in 2025 and reach 5.4% in 2026 because of 4% growth in 2024. In addition, these figures show the strategic push towards economic diversification and strong financial sector development.
Strong Financial Sector Performance
The report highlights the health of the UAE banking sector, which is well-capitalized, highly liquid, and resilient to external shocks. Moreover, stress tests confirmed that banks can continue to lend and maintain the capital and liquidity levels well above the regulatory requirements.
Moreover, non-bank financial institutions (NBFIs) like insurance and exchange houses also showed strong performance. In addition, the insurance sector alone sees the 21.4% growth because it reaches Dh64.8 billion in gross written premiums.
UAE Economic Growth is Backed by CBUAE and National Institutions
CBUAE Governor Khaled Mohamed Balama said, “The UAE maintained strong economic and financial conditions in 2024, despite growing global risks. We are focused on creating a resilient regulatory framework aligned with global best practices.”
Moreover, the report highlights the operational success of the UAE Financial Stability Council, chaired by Sheikh Mansour bin Zayed Al Nahyan. It enhances the systemic risks, oversights, and response abilities.
Secure and Forward-Thinking Financial Ecosystem
2024 also experienced rapid growth in the UAE sectors, like AI, Fintech, and digital payments. So, you must take a look at the key developments in these sectors:
- Launch of the Jaywan domestic card scheme
- Expansion of the Aani Instant Payment Platform
- Progress in the Digital Dirham initiative
On top of that, the Central Bank has also introduced macroprudential tools, stricter cybersecurity protocols, and a renewed focus on climate risks. Therefore, it ensures that the UAE remains at the top notch sustainable finance.
Investor confidence
The economy of the UAE is gearing for accelerated growth due to its strong base, regulatory resilience, and growing technological development. Moreover, the forecast of the Central Bank has reaffirmed the global investor confidence in the long-term financial stability and economic vision of the country.
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