Abu Dhabi, UAE – The Central Bank of the UAE has released its annual report for 2025, revealing strong economic performance and exceptional growth that reflects the resilience of the financial system. This was supported by flexible monetary policies and advanced regulatory frameworks that have strengthened the stability of the country’s financial sector.
Strong economic growth
The report showed that real GDP grew by 5.6% in 2025. This was primarily driven by the expansion of non-oil sectors, reflecting the success of economic diversification policies. Inflation rates also declined to around 1.3%, reflecting price stability and enhanced competitiveness of the national economy. Continued growth is also projected for 2026.
Financial sector performance
The banking sector performed strongly, with assets reaching approximately AED 5.4 trillion. This was supported by credit growth of 17.9% and deposit growth of 16.2%. The insurance sector also achieved significant growth, with written premiums rising to AED 75.2 billion. Total assets also increased to AED 166.7 billion, reinforcing its role in supporting financial stability.
Developing oversight and governance
The central bank strengthened the financial system’s resilience by implementing additional capital buffers and developing regulatory frameworks. This included integrating climate risk and IT governance into oversight. Stress tests demonstrated the banking sector’s ability to withstand risks. It also maintained strong capital adequacy levels and improved asset quality.
Digital transformation and innovation
The financial system has witnessed significant progress in digital transformation. The number of licensed fintech companies has more than doubled to 36. Furthermore, modern financial settlement platforms have been launched. The “Digital Dirham” project has been developed and its first government transactions have been implemented, reinforcing the UAE’s leadership in financial innovation.
Promoting financial inclusion
The Central Bank launched the “National Financial Inclusion Strategy 2026-2030.” This strategy aims to expand access to financial services for all segments of society. This initiative coincides with strengthening the UAE’s position as a global hub for Islamic finance and achieving significant progress in Emiratization within the financial sector.
