The UAE Central Bank released its 2023 Annual Report, showcasing a rebound in the country’s overall output growth to 3.9 percent. This growth is attributed to the recovery across various sectors of the economy. The report also highlights the real GDP growth of 3.6 percent in 2023 and the financial sector’s robust performance, with a growth of 11.1 percent in total assets. The banking system maintained appropriate capitalization, profitability, and liquidity throughout the year.
The Central Bank made significant progress against its 2023-2026 Strategy, focusing on financial stability, monetary policy, banking, insurance, financial crime supervision, consumer protection, and digitization. The banking system in the UAE improved across key soundness indicators, reflecting the efforts put in place by the CBUAE. The institution actively employed a macroprudential policy framework to safeguard financial stability and conducted stress tests to assess banks’ capital and liquidity buffers against adverse scenarios.
In 2023, the CBUAE completed 247 prudential examinations, with climate-related risks being integrated into its regulatory and supervisory framework for licensed financial institutions. The institution’s efforts in financial crime supervision contributed to the completion of the action plan agreed with the Financial Action Task Force (FATF). As part of its Financial Infrastructure Transformation (FIT) programme, the CBUAE launched innovative payment platforms to strengthen the UAE’s stature as a global digital payments hub.
The CBUAE issued the Ombudsman Regulation in 2023, establishing Sanadak, the first independent financial ombudsman unit in the MENA region. The institution continued to promote Emiratisation in the financial sector, with 2,720 Emiratis joining in 2023. In line with its commitment to sustainability, the CBUAE launched the COP28 UAE TechSprint to promote technology innovation in scaling sustainable finance. The institution aims to mobilize Dh1 trillion in sustainable finance by 2030.
Khaled Mohamed Balama, governor of the CBUAE, emphasized the institution’s commitment to safeguarding financial stability, promoting trust in the UAE’s financial system, enabling digital transformation, and improving the nation’s competitiveness globally. The CBUAE’s focus on innovative projects as part of the FIT programme aims to transform the financial sector. The institution looks forward to continuing efforts to promote innovation and contribute to the UAE’s ambition of becoming a leading international financial center. Through its strategic initiatives and actions, the CBUAE plays a vital role in maintaining a stable and thriving financial environment in the UAE.
