Abu Dhabi, UAE – The Central Bank confirmed that continued economic growth, along with economic diversification policies and structural reforms, contribute to reducing the impact of imported inflation and maintaining price stability in the country.
The Central Bank added in a research paper that studies indicate that inflation in the UAE does not depend on one factor, but is affected by a combination of local and external factors.
He explained that on the domestic side, rents and past price stability play an important role in determining the course of inflation.
As for external factors, there is an impact on global oil and commodity prices.
However, its impact remains relatively limited thanks to the strength of monetary policies and the stability of the exchange rate.
Global inflation wave
The Central Bank pointed out that global inflation rates have witnessed a noticeable rise since 2020.
In some advanced economies, it reached about 8 and 9%, which prompted many central banks to tighten their monetary policies.
On the other hand, the Central Bank indicated that inflation rates in the UAE remained at more moderate levels.
It reached about 4.8% in 2022, and then took a downward path.
Which reflects the specificity of the national economy and its ability to absorb shocks.
open economy
He also pointed out that the nature of the UAE economy, as an open and oil-exporting economy, makes it necessary to use special economic models to understand inflation more accurately, rather than relying entirely on traditional models.
The Central Bank stated that, on the other hand, the country’s labor market shows high flexibility, thanks to its reliance on expatriate workers.
This reduces the impact of rising wages on inflation compared to industrialized countries.
However, inflation may be affected indirectly, through changes in labor demand associated with oil price cycles.
The Central Bank concluded the working paper by saying: “In the end, the Emirati model emerges as a distinctive case, where internal and external factors balance in shaping inflation, which enhances the economy’s ability to maintain its stability despite global fluctuations”.
new appointments
In addition, data issued by the Central Bank on Friday showed that 117 key employees were appointed in national banks last January alone.
The total number of employees reached 32,010 at the end of the month, compared to 31,893 at the end of December 2025.
While the number of employees in foreign banks remained unchanged at 6,974 employees.
The data showed that the Central Bank’s gold balance exceeded 43 billion dirhams at the end of last January, compared to 37.9 billion dirhams at the end of the previous December.
With a monthly increase of 5.1 billion dirhams, equivalent to a growth of 13.5%.
Deposits of individuals residing in the country rose by the end of last January to 866 billion dirhams, compared to 855.3 billion dirhams at the end of December.
With a monthly increase of 10.7 billion dirhams, equivalent to a monthly growth of 1.3%.
While savings deposits at the end of January amounted to 413.6 billion dirhams, compared to 400.5 billion dirhams at the end of December 2025.
This is a monthly increase of 13.1 billion dirhams, with a growth of 3.3%.
