The central bank issues the financial stability report for 2024

The United Arab Emirates Bank issued a financial stability report for 2024, including a comprehensive evaluation of the stability of the financial system, and financial developments in all fields in light of the growing global challenges and risks.

According to a press release issued today, the report showed the durability of the banking sector in the UAE, supported by strong feedback to protect capital and liquidity, as well as improvement of the quality of assets and continued growth, while the risks of financial stability in the country remained tight and under control thanks to the strong economic pillars, precautionary policies, and effective management of risks.

The report reviews the local and global total economic trends, the conditions of financial markets, the performance of various sectors, and regulatory developments, with a focus on the aspects of emerging flexibility and risks, the central bank’s commitment to pre -emptive monitoring of risks, innovation and transparency, supporting the flexibility of the financial system, and cooperation with local and international partners to enhance the position of the UAE as a leading global financial center.

The strong performance of the financial system contributed to enhancing the economic flexibility of the state, as the real GDP of the UAE increased by 4% in 2024, driven by momentum in non -oil sectors, which is a major engine for economic diversification.

It is also expected that the average total GDP growth rate will remain positive for the coming years, to 4.4% in 2025, and to rise to 5.4% in 2026.

The financial system in the UAE in 2024 witnessed firm and stable conditions, as the tasks of the Financial Stability Council in the UAE headed by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President of the State, Deputy Prime Minister, Chairman of the Presidency Board, Chairman of the Emirates Central Bank, Chairman Emerging risks, facilitating policies response to horizontal risks in a timely manner, which contributes to achieving its goals in promoting and protecting financial stability in the country, identifying regular risks, and facilitating cooperation between financial supervisory authorities and other authorities.

The Central Bank of Supervision and Supervisory Frameworks also enhanced the creation of new overall precautionary tools, tightening cybersecurity requirements, progressing in the field of sustainable financing, and expanding the scope of climate change risk assessment, in line with international best practices.

The comprehensive tests conducted by the Central Bank of the ability to bear pressure in 2024 confirmed the ability of banks in the UAE to absorb total economic shocks, and to continue to provide credit facilities even in light of negative virtual scenarios, and maintaining high levels of capital and liquidity exceeding the minimum requirements, highlighting the flexibility of the banking sector in the face of global risks.

The sectors of non -banking financial institutions in the UAE achieved noticeable positive results at various levels, as the insurance sector remained flexible, maintained a sufficient level of capital sheet, and achieved great growth of 21.4%, bringing the total insurance premiums to be 64.8 billion dirhams, in order to enhance the rights of documentation campaign.

The financing companies also maintained sufficient officials with more improvement in liquidity levels, while exchange business continued to prove their flexibility and the stability of their operations.

The year 2024 witnessed an acceleration in the pace of digital transformation, represented in high rates of financial technology adoption and digital payments, expanding the scope of banking services, integration between artificial intelligence and data analysis, as the Central Bank continued to develop the national payment and settlement infrastructure, through the launch of the national payment system “Gene”, and the wide turnout for the services of the immediate payment platform “Annie”, and progress The digital currency of the central banks, “digital dirham”, has strengthened the efficiency and flexibility of the financial system.

It is expected that the future view of the financial system in the UAE will remain positive, with the support of the solid economic foundations and precautionary economic management, as well as the efforts of the central bank in supporting the flexibility of the financial system, and enhancing pre -emptive monitoring of risks, innovation and transparency.

Khaled Mohammed Al -Amma, Governor of the United Arab Emirates Bank, said that the UAE has maintained strong economic and financial conditions in 2024, despite the growing economic challenges and the high pace of global risks, with the support of the growth of the national economy, and the durability and flexibility of the banking system.

He added that the central bank is committed to moving forward with a steady pace towards achieving the vision of good leadership, the development plans of the state, and its strategic goals by developing the supervisory and supervisory framework of the financial system to ensure sustainable flexibility, enhance financial and economic stability, and push the momentum of growth and prosperity in the UAE.