The Central Bank of the UAE published its Financial Stability Report 2025, finding that the financial and banking system remained resilient amid strong capital, liquidity, asset quality and profitability. Banking assets rose 17.1% to AED 5.3 trillion, while lending increased 17.8%, driven mainly by domestic retail and private corporate credit. The nonperforming loan ratio fell to 3.3% from 4.7% in 2024, and the capital adequacy ratio stood at 17.0%, above minimum regulatory requirements. Net profits increased 11.7% to AED 90.8 billion. Under the adverse supervisory stress-test scenario, the average Common Equity Tier 1 ratio declined from 14.1% to a low of 11.1% but remained above regulatory minimums. The report also found continued resilience in insurance and Islamic banking and reviewed payment infrastructure developments, including Aani and Jaywan.
2026-08-17Central Bank of the UAE
Central Bank of the UAE finds banking system resilient, with assets up 17.1% to AED 5.3 trillion
The Central Bank of the UAE found the banking system remained resilient in 2025, with assets rising 17.1% to AED 5.3 trillion and net profits increasing 11.7% to AED 90.8 billion. Asset quality improved, capital remained above regulatory minimums, and stress tests showed banks could withstand severe economic and financial shocks.