A recent report from the Central Bank of the UAE indicates that foreign banks operating in the country experienced significant growth in their assets and investments throughout 2025. In total, 38 foreign banks added 55 billion dirhams to their asset base, reflecting a year-on-year increase of 10.5%.
The cumulative total of these assets rose from 525 billion dirhams at the end of 2024 to nearly 580 billion dirhams by the end of 2025, accounting for approximately 11% of the total banking sector investments in the country. This highlights the ongoing strength and role of foreign banks in enhancing financial liquidity in the local market.
Strategic Initiatives
Foreign banks also saw remarkable growth in their investments, with the investment balance rising from 51.3 billion dirhams in December 2024 to 60 billion dirhams at the close of the previous year.
These investments were primarily concentrated in securities and held bond activities, reflecting well-considered strategies aimed at maximizing returns while maintaining portfolio stability amid global financial fluctuations.
Regarding deposits, the report noted that foreign banks attracted an additional 46 billion dirhams in new deposits during the year. This enhancement underscores their appeal in the local market as an effective channel for investing savings.
The cumulative deposit balance increased from 330 billion dirhams in 2024 to 376 billion dirhams at the end of 2025.
The majority of these deposits stemmed from the private sector, followed by non-resident deposits, and finally, government deposits as the third largest source. This trend illustrates a growing confidence among various customer segments in foreign banking institutions within the UAE.
In terms of credit activity, data from the central bank demonstrated a gradual increase in financing and credit facilities provided by foreign banks, rising by 5% year-on-year, with these banks granting over 9 billion dirhams in new financing to businesses and individuals during the previous year.
The total credit balance climbed from 180.5 billion dirhams in 2024 to approximately 188.5 billion dirhams by the end of 2025, representing about 7.3% of the overall banking credit extended in the country.
Flexible Financing
The private sector financing was concentrated at 116.4 billion dirhams, with commercial and industrial sectors dominating this balance with 83 billion dirhams. In contrast, individual financing totaled around 33.6 billion dirhams.
These figures suggest that foreign banks are increasingly contributing to supporting the economic activities of businesses while providing accessible and flexible financing options for individuals, enhancing local market dynamism and offering broader opportunities for economic growth.
These results reflect the growing role of foreign banks in the UAE, not only in expanding asset and deposit bases but also in enhancing financing channels for both the private and government sectors, creating a comprehensive banking environment capable of addressing local economic challenges and global financial and energy market fluctuations.