The Central Bank of the UAE (CBUAE) has released its 2024 Annual Report, highlighting its significant accomplishments and strategic initiatives that have played a crucial role in supporting the nation’s economic growth, financial stability, and the development of the banking, insurance, and financial sectors.
UAE’s Economic Performance and Growth Projections
The UAE’s economy saw a notable boost in 2024, with the real GDP growing by 3.9%. This was largely driven by strong performance in both the oil and non-oil sectors. Looking ahead, the CBUAE has forecasted accelerated growth of 4.7% in 2025, signaling the continued resilience of the national economy and its successful diversification efforts. Non-oil foreign trade also surged by 13.8%, reaching AED 2.8 trillion, boosted by the UAE’s Comprehensive Economic Partnership Agreements.
Banking Sector and Financial Stability
The UAE’s banking sector has made exceptional strides, with total banking assets reaching AED 4.56 trillion, reflecting a 12.0% growth. This positions the UAE as a leader in the Middle East with robust banking fundamentals, including high capital levels, strong profitability, and sufficient liquidity. Meanwhile, the insurance sector also experienced growth, with total gross written premiums increasing to AED 64.8 billion.
As part of its proactive approach to maintaining financial stability, the CBUAE increased capital reserves to safeguard against cyclical fluctuations and bolster long-term resilience. The central bank also enhanced stress testing and risk assessments, considering climate change as a potential threat to the banking sector.
Combating Financial Crimes and Enhancing Consumer Protection
The CBUAE made notable progress in its efforts to combat money laundering and terrorist financing. This collaborative work with local and federal authorities contributed to the UAE’s successful exit from the Financial Action Task Force’s (FATF) “enhanced monitoring process.”
In a bid to strengthen consumer protection, the CBUAE introduced “Sanadak,” the MENA region’s first independent ombudsman unit. This initiative aims to efficiently resolve banking and insurance disputes, fostering greater consumer confidence in the financial system.
Progress in Financial Infrastructure and Innovation
The CBUAE’s Financial Infrastructure Transformation (FIT) programme continues to drive innovation, with the launch of the UAE’s domestic card scheme, “Jaywan,” and the instant payment platform, “Aani.” The central bank also introduced the world’s first Open Finance regulation and a licensing framework for virtual stablecoins to ensure financial stability amid global market changes. Furthermore, the launch of the “Know Your Customer” electronic platform enhances financial infrastructure security by providing a reliable system for verifying customer identities.
Emiratisation Efforts and National Development
Emiratisation remained a key priority in 2024, with UAE nationals employed across licensed financial institutions increasing by 152.9%, totaling 2,866 nationals. The number of UAE nationals in critical positions also saw growth, reaching 7,886, a 20.22% increase compared to the previous year.
Sustainable Finance and Islamic Finance Advancements
The CBUAE is committed to promoting sustainable finance and reinforcing the UAE’s position as a global leader in Islamic finance. As part of these efforts, the central bank launched the first phase of its “Sustainable Monetary Sukuk” programme, focusing on studying its economic feasibility and potential market size.
Governor’s Remarks on CBUAE’s Achievements
Khaled Mohamed Balama, Governor of the CBUAE, expressed pride in the central bank’s achievements, stating, “The CBUAE, driven by the vision of the wise leadership and the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, continues its efforts to enhance financial and monetary stability, develop regulatory and supervisory frameworks, and lead innovation in the financial services sector.”
He further added, “Our transformative initiatives and projects, launched during 2024, have contributed to enhancing the efficiency and competitiveness of the financial sector, building a more resilient and sustainable financial system. These efforts culminated in winning the Leading Federal Entity Award at the Mohammed bin Rashid Government Excellence Award.”
Balama reaffirmed the CBUAE’s commitment to strengthening the UAE’s position as a global financial hub and ensuring a prosperous future for the financial sector, focusing on sustainable development for future generations.
