The UAE banking sector demonstrated strong resilience and growth in 2025, with total assets expanding by 17.1 percent to AED5.3 trillion and loan portfolios growing 17.8 percent, largely driven by domestic retail and private corporate lending. According to the Central Bank of the UAE’s (CBUAE) Financial Stability Report 2025, the system benefited from robust national economic performance, solid liquidity, high capitalization, and rising profitability.

Asset quality improved noticeably over the period, with the non-performing loan (NPL) ratio dropping to 3.3 percent in 2025—down from 4.7 percent in 2024 and 8.2 percent in 2020. The sector maintained strong capital buffers, closing the year with a Capital Adequacy Ratio (CAR) of 17.0 percent, well above regulatory baselines. Net profits rose 11.7 percent to reach AED90.8 billion, underpinned by higher operating income. Additionally, annual supervisory stress tests confirmed that average Common Equity Tier 1 (CET1) capital ratios would remain above regulatory minimums even during severe adverse economic conditions.

Beyond traditional commercial banking, the report underscored sustained strength across Islamic banking, the insurance sector, and national payment infrastructure under the Financial Infrastructure Transformation (FIT) Programme. Initiatives such as the Aani instant payments platform and the Jaywan domestic card scheme continue to enhance operational efficiency, cross-border payment integration, and digital transformation. CBUAE Governor Khaled Mohamed Balama emphasized that the central bank will keep refining supervisory frameworks to safeguard long-term financial stability and sustain broader economic expansion.

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