At the end of 2025, the total assets of the UAE banking sector rose by 17.1 percent to AED5.3 trillion, with the loan portfolio growing by 17.8 percent, largely due to heightened domestic lending, especially within the retail and private corporate sectors.
The Central Bank of the UAE's (CBUAE) Financial Stability Report 2025 disclosed this, confirming the robustness and resilience of the UAE’s financial and banking system, bolstered by solid banking sector performance, sufficient capitalization and liquidity, enhanced asset quality, and ongoing increases in credit, deposits, and profitability, amid the favorable performance of the UAE economy, according to a WAM news agency report.
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Asset quality metrics persisted in enhancement, as the non-performing loan (NPL) ratio fell to 3.3 percent in 2025, down from 4.7 percent in 2024 and 8.2 percent in 2020. The UAE banking sector also upheld sufficient capitalization, with the Capital Adequacy Ratio (CAR) reaching 17.0 percent at the close of 2025, staying significantly above the minimum regulatory standards.
The banking system sustained robust profitability, as net profits rose by 11.7 percent to AED90.8 billion in 2025, aided by an increase in total operating income. It also upheld robust liquidity, bolstered by ongoing deposit increases.
The findings of the 2025 supervisory stress tests validated the banking industry's strength against significant economic and financial disturbances.
In the unfavorable scenario, the average Common Equity Tier 1 (CET1) capital ratio fell from 14.1 percent to 11.1 percent at its lowest level throughout the stress-test period, yet stayed above the minimum regulatory standards.
The report additionally emphasized the ongoing strength of various areas within the financial system, such as the insurance industry and Islamic banking, along with the ongoing advancement of the UAE’s financial infrastructure and payment systems through the Financial Infrastructure Transformation (FIT) Programme, which enhances the financial system's efficiency and resilience while fostering digital transformation.
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The report emphasized advancements in payment systems, featuring Aani, the Instant Payments Platform, and Jaywan, the UAE's national card payment system, as well as improvements in cross-border payments, further boosting the efficiency and strength of the UAE’s financial infrastructure.
Khaled Mohamed Balama, Governor of the CBUAE, says, “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”.
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“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”.