UAE Banking Sector Assets Climb 17.7% to AED 5.56 Trillion

The UAE's banking sector posted robust growth, with total assets rising 17.7% year on year to about AED 5.56 trillion, according to the Central Bank of the UAE. The loan portfolio expanded by 20.3% over the same period, while deposits grew 17.4%, reflecting strong credit demand and healthy liquidity as the country's non-oil economy continued to expand. Banks maintained solid balance sheets, with the capital adequacy ratio at 16.8%, pointing to ample buffers to absorb potential shocks, alongside improved asset quality. The central bank kept its base rate at 3.65%, in line with US Federal Reserve policy, given the dirham's peg to the dollar, and market interest rates broadly tracked that benchmark. The banking sector's strength has been underpinned by momentum in financial services, construction and trade, as well as government support measures and an expanding network of trade agreements. Sustained double-digit growth in assets and lending highlights the sector's central role in financing the UAE's diversification drive, though regulators continue to emphasise prudent risk management, strong capital positions and sound governance as the system scales.