Following developments in the financial sector, officials from both local and global banks have affirmed that the comprehensive proactive support package approved by the board of the Central Bank of the United Arab Emirates, led by His Highness Sheikh Mansour bin Zayed Al Nahyan, reflects the institution’s commitment to enhancing resilience and reinforcing the stability and strength of the banking sector amid extraordinary circumstances affecting the region and the global economy. They noted that recent measures boost liquidity levels and provide additional flexibility for banks, ensuring a consistent flow of financing into the economy despite current global fluctuations.
In statements to local media, they emphasized that the UAE banking system is underpinned by solid fundamentals, characterized by substantial assets and record foreign currency reserves, along with advanced regulatory frameworks and a robust capacity to absorb shocks. They stated that this package strengthens investor confidence and supports the stability of financial markets, enabling banking institutions to continue effectively serving trade and investment needs despite ongoing uncertainties in regional and global markets.
Strategic Vision
Osama Al Rahma, Chairman of the Financial Institutions and Money Transfer Group and Head of Business Development at Emirates Investment Bank, highlighted that the Central Bank’s presentation exemplifies the depth of the UAE’s strategic vision and its exceptional ability to anticipate challenges and convert them into opportunities that strengthen its financial standing globally.
He noted that the robustness of the country’s financial and banking system, supported by reserves exceeding one trillion dirhams, reflects a well-established institutional approach anchored in long-term planning and effective monetary policy management. He affirmed that these achievements stem from comprehensive national strategies developed over the years.
He also pointed out that the proactive support package enacted by the Central Bank represents a significant step that enhances the capacity of financial institutions to continue their essential roles in supporting the national economy, particularly during exceptional global conditions. Furthermore, the diversity of the package’s components indicates the comprehensiveness of the vision and the country’s commitment to sustaining economic growth and safeguarding its achievements.
He concluded that the UAE is continuously strengthening its position as a global financial hub characterized by high levels of trust and stability, supported by the readiness of its banking sector and elevated liquidity levels that enhance its ability to efficiently support various economic sectors.
Proactive Approach
Mohamed Abdul Bari, CEO of Abu Dhabi Islamic Bank Group, stated that the precautionary measures adopted by the Central Bank demonstrate a proactive approach that fortifies the stability and soundness of the financial and banking system in the UAE amid current global and regional changes.
He added that these steps reaffirm the strong foundational elements of the UAE banking sector, bolstered by high liquidity levels and solid capital bases, alongside a robust regulatory framework that enhances financial institutions’ flexibility to continue their roles in supporting economic activity and maintaining financial stability.
Abdul Bari further emphasized that these initiatives illustrate the commitment of relevant parties to remain prepared to implement proactive measures to sustain the financial system’s stability and build trust under varying circumstances.
He reiterated Abu Dhabi Islamic Bank’s full commitment to aligning with the Central Bank’s directives and working closely with regulatory authorities and the banking sector to support the national economy and ensure financial stability.
Economic Dynamism
Shamsa Al Falasi, Executive Director of Citibank UAE, remarked that the support package underscores the financial authorities’ effectiveness and readiness to tackle all scenarios and challenges. She pointed out that the UAE banking system continues to maintain high liquidity rates, adequately meeting the needs of its clientele, both individual and corporate.
Al Falasi expressed confidence in Citibank’s commitment to the robust and dynamic sectors of the UAE economy, as well as appreciation for the leadership’s effective response to current circumstances.
She added that the bank continuously leverages its global experiences to assist clients in the country and enhance their operational capacities during these unprecedented times, positioning itself as a reliable partner committed to the development of local financial and capital markets.
Solid Ground
Rola Abou Mena, CEO of Standard Chartered for the UAE, Middle East, and Pakistan, stated that the proactive measures taken by the Central Bank reaffirm the country’s steadfast commitment to maintaining a robust financial system capable of adapting to changes.
She further noted that these actions reflect a clear understanding of the importance of preparedness, particularly amid uncertainty in global markets, where early action becomes a hallmark of sound financial governance.
Through enhancing liquidity levels and providing clear support mechanisms, the Central Bank establishes a solid foundation that enables financial institutions to continue operating efficiently and stably, ensuring the continued flow of funding across various economic sectors regardless of external challenges.
This step also reflects the state’s institutional strength and maturity, enabling confident and balanced responses in a changing global environment. Early precautionary intervention safeguards confidence in the financial system and prevents the accumulation of pressures.
Abou Mena added that at Standard Chartered, they view these measures as additional support for financial institutions to continue their role in facilitating trade and investment while enabling cross-border capital flows, while remaining fully focused on serving their clients and supporting their business growth without interruption under any circumstances.
She affirmed that the UAE has demonstrated its renewed capability to establish itself as a global financial center connecting regional and international markets, providing an operational environment that combines openness and institutional strength. These measures further solidify this role and deepen investors’ confidence in the national economy’s ability to adapt and achieve sustainable growth amidst ongoing global interconnections and growing volatility, making the UAE a remarkable model of stability and opportunity seizing that enhances international investor confidence in the future of its economy.
Shock Absorption
Hamza Douik, Head of Trading for the MENA region at Saxo Bank, stated that the recently adopted flexibility package by the Central Bank sends a clear message that the UAE’s financial system still maintains solid foundations and high liquidity, fully capable of supporting the economy under exceptional global conditions.
He noted that data from the Central Bank indicates that the banking sector holds assets worth 5.4 trillion dirhams, with foreign reserves exceeding one trillion dirhams, alongside a coverage ratio of 119% for the monetary base, confirming the system’s capacity to absorb shocks.
Douik explained that monetary measures enhance banks’ access to as much as 30% of their reserve balances, supported by liquidity lines in dirhams and dollars, thereby enabling flexible management of financing needs without impacting credit flows.
Regarding easing liquidity pressures, he mentioned that the temporary relaxation of liquidity requirements and financing ratios ensures that institutions continue to provide financing even amid market fluctuations, maintaining business continuity across various sectors.
On the subject of capital requirements, Douik stated that releasing capital buffers enhances banks’ ability to direct capital directly into the economy, supporting companies that may face tightened credit conditions.
He noted that allowing customers who are affected to defer loan classifications alleviates unnecessary pressures on balance sheets, providing individuals and businesses with the necessary time to regain stability. The Central Bank encourages banks to continue lending, reinforcing a core principle that liquidity must remain accessible to the real economy, ensuring economic momentum amidst global challenges.
UAE Banks: Wise Vision and Proactive Approach
The UAE Banks Federation confirmed that the proactive support package approved by the board of the Central Bank reflects the latter’s forward-looking approach aimed at enhancing flexibility and stabilizing the banking sector in light of the extraordinary circumstances impacting the region and the global economy.
His Excellency Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation, stated that this step underscores the wise leadership’s vision of the UAE and the proactive stance of the Central Bank, which strives to develop strategies, policies, and frameworks to ensure the stability of the banking and financial sector, thus fulfilling its role in economic and social development and achieving the strategic priorities of the UAE.
Moreover, Al Ghurair mentioned that, built on the solid foundations of the UAE economy and advanced fiscal policies, the banking sector has achieved growth while maintaining high financial soundness ratios, effectively facing global economic challenges and enjoying elevated levels of capital adequacy and liquidity that surpass regulatory requirements and global standards. This proactive package from the Central Bank enhances adaptability and resilience, providing additional flexibility for financial institutions to utilize excess liquidity and capital reserves to support customers during these exceptional conditions, thereby bolstering the national economy.
He reiterated the commitment of the banking and financial sector to support clients, both individuals and businesses, providing safe and seamless banking services under the direct supervision of the Central Bank. The banking sector in the UAE has developed frameworks and policies for risk management, business continuity, and cybersecurity to effectively address potential challenges. He confirmed their commitment to work closely with the Central Bank and other relevant parties to monitor developments closely to ensure the stability of systems and the complete readiness to offer financial and banking services to all customer segments.