The United Arab Emirates has successfully maintained its global leadership in banking service attractiveness for the year 2025. Initial indicators reveal a significant disparity between the local market and the nearest competitors in terms of the development and distribution of banking services.
Jamal Saleh, the general director of the Emirates Banks Union, emphasized that the UAE banking sector has reached a high level of global competitiveness due to notable technological advancements that have streamlined banking services. This is coupled with strong indicators of the sector’s stability and the momentum achieved in banking activities over the past year and the ongoing shift towards artificial intelligence.
Artificial intelligence is expected to enhance customer experiences across banking systems by establishing standardized approaches to client interactions, minimizing personal biases that could influence decisions. He pointed out that regulatory frameworks and guidelines issued by the central bank further enhance the appeal and efficiency of these enhancements. Regarding the anticipated adoption rates of artificial intelligence in banking among clients, he mentioned that the prevalence of electronic banking services is exceptionally high in the local market, promoting an increased reliance on artificial intelligence as a significant advancement that clients have begun to expect.
The local banking services market boasts a rich experience in digitization, supported by four digital banks operating in a progressive environment that facilitates their establishment. Traditional banks are also capable of transitioning to digital formats, albeit through gradual phases involving internal system restructuring and integrating technology with standard banking operations, especially given the historical context of local banks.
Official banking indicators reflect the ongoing digital transformation within banks, which includes a reduction in the number of branches and banking units. This shift has not adversely affected the job market; rather, it has led to the emergence of new job sectors, contributing to a continuous increase in employment rates within the banking sector.
In parallel, banks have accelerated the implementation of a five-year localization strategy initiated between 2020 and 2025, aiming to create 5,000 new jobs for citizens within the banking sector. Saleh noted that a study is currently being prepared to launch a second phase of this initiative by 2030, aimed at clearly enhancing the attraction of national talent to the banking sector and strengthening domestic banking expertise. Regarding the observed decline in the banking credit balance for small and medium-sized enterprises compared to previous years, he stated that several factors contribute to changes in funding levels, including the increasing ability of small and medium enterprises to secure their financial needs independently from bank financing through self-funding or alternative financing from financial companies and various non-banking funding programs available in the local market.