The Central Bank of the United Arab Emirates published its 2024 Financial Stability Report, providing a cross-sector assessment of financial developments and concluding that financial stability risks remained broadly contained and unchanged, with the banking sector supported by strong capital and liquidity buffers, improved asset quality and continued growth. The report also notes that 2024 stress tests confirmed banks’ ability to absorb macroeconomic shocks while maintaining capital and liquidity above minimum requirements and continuing to provide credit under hypothetical adverse scenarios. The report highlights the operationalisation of the UAE Financial Stability Council to strengthen coordination, systemic risk oversight and timely policy responses to horizontal risks. It also points to supervisory and regulatory developments in 2024 including new macroprudential tools, stronger cybersecurity requirements, steps in sustainable finance and an expanded scope for climate change risk assessment, alongside accelerating digital transformation through the Domestic Card Scheme Jaywan, widespread adoption of the Aani Instant Payment Platform and progress on the central bank digital currency Digital Dirham. Non-bank sector performance included resilient insurance solvency and 21.4% growth in gross written premiums to AED 64.8 billion, with finance companies maintaining adequate capitalisation and improving liquidity and money exchange businesses remaining operationally stable; the report also records real GDP growth of 4% in 2024 and projects 4.4% in 2025 and 5.4% in 2026.

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