The UAE banking system’s total assets increased by 17.1% to AED5.3 trillion at the end of 2025, with the loan portfolio, with an expansion ratio of 17.8%, outpacing the overall trajectory.
As per the Central Bank of the UAE’s (CBUAE) Financial Stability Report 2025, the asset uptick was primarily driven by increased domestic lending, particularly across the retail and private corporate segments.
The Gulf major’s central bank believes that this trend shows the strength and stability of the country’s financial and banking system, which is supported by enough capital and liquidity, better asset quality, and ongoing growth in loans, deposits, and profits, all while the UAE economy performs well.
“Asset quality indicators continued to improve, with the non-performing loan (NPL) ratio declining to 3.3% in 2025, compared to 4.7% in 2024 and 8.2% in 2020. The UAE banking system also maintained adequate capitalisation, with the Capital Adequacy Ratio (CAR) at 17.0% at the end of 2025, remaining well above minimum regulatory requirements,” the report noted further.
“The banking system maintained strong profitability, with net profits increasing by 11.7% to AED90.8 billion in 2025, supported by growth in total operating income. It also maintained strong liquidity, supported by continued deposit growth,” the study said.
The results of the 2025 supervisory stress tests confirmed the banking sector’s resilience to severe economic and financial shocks. In the worst-case scenario, the average Common Equity Tier 1 (CET1) capital ratio dropped from 14.1% to 11.1% at its lowest point during the stress tests, but it stayed above the required minimum levels.
The report also highlighted the continued resilience of other segments of the Emirati financial system, including the insurance sector and Islamic banking, as well as the ongoing development of the UAE’s financial infrastructure and payment systems under the Financial Infrastructure Transformation (FIT) Programme, which enhances the overall efficiency and resilience of the financial system, apart from supporting the overall efficiency and resilience of the financial system and its digital transformation.
Positive developments in payment systems, including “Aani,” the “Instant Payments Platform,” and “Jaywan,” the UAE’s national card payment scheme, alongside developments in cross-border payments, further enhanced the efficiency and resilience of the Gulf major’s financial infrastructure.
Khaled Mohamed Balama, Governor of the CBUAE, said, “The Financial Stability Report 2025 affirms the strength and resilience of the UAE financial system and its ability to continue supporting the national economy efficiently, underpinned by adequate capital and liquidity, improved asset quality, and continued growth in credit, deposits, and profitability.”
“The CBUAE will continue to strengthen its supervisory and prudential frameworks and enhance the financial system’s preparedness to address future risks and challenges, contributing to safeguarding financial stability and supporting sustainable economic growth,” he concluded.