The Governor of the Central Bank of the UAE, H.E. Khaled Mohamed Balama, has formally affirmed that the country’s banking and financial sector is stable, resilient, and fully operational, even as geopolitical pressures mount across the region.
What Did the Central Bank Governor Say?
Governor Balama confirmed that banks, financial institutions, and insurance companies across the UAE are continuing to operate normally, delivering services to customers nationwide without disruption. His statement comes at a critical time, following Iran’s missile and drone attacks on the Gulf state after the US and Israel launched strikes on Iran, which prompted significant market volatility.
What Do the Numbers Show?
The UAE’s financial fundamentals remain firmly intact. The capital adequacy ratio stands at 17 percent, while the Liquidity Coverage Ratio exceeds 146.6 percent, both significantly above internationally recommended regulatory thresholds. Furthermore, total assets of the UAE banking and financial sector now exceed AED 5.42 trillion, reflecting the scale and capacity of financial institutions to meet obligations and sustain economic activity under challenging conditions.
Why Is the UAE’s Financial System So Resilient?
Despite successive geopolitical developments in the region, the UAE’s banking sector has consistently demonstrated resilience, adaptability, and sustained growth, reinforcing the country’s position as a trusted and leading financial hub at both regional and global levels.
This resilience is grounded in sound governance, institutional discipline, financial sector diversification, and proactive risk management frameworks that enable the sector to respond effectively to regional developments.
What Is the Central Bank Doing Going Forward?
The Central Bank continues to closely monitor key financial stability and liquidity indicators, conducting regular assessments and stress-testing exercises to ensure the ongoing soundness of the financial system. Governor Balama reaffirmed the institution’s full operational readiness to safeguard the achievements built over more than five decades of economic progress.
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