The UAE banking sector has reached a new milestone, with total assets hitting AED 4.457 trillion by the end of November 2024, up from AED 4.075 trillion in 2023. This growth reflects the country’s strong economic expansion and the resilience of its financial institutions.
Key Highlights of UAE’s Banking Growth
- Improved Asset Quality: The net non-performing loan ratio improved to 2.1%, down from 2.4% in 2023, indicating stronger financial health.
- Record Banking & Insurance Growth: The insurance sector also saw an impressive rise, with gross written premiums increasing to AED 64.5 billion, compared to AED 53.3 billion in 2023.
Central Bank of the UAE’s (CBUAE) Financial Strength
The CBUAE achieved record results in 2024, with total assets reaching AED 896 billion, up from AED 721 billion in 2023. This growth was driven by increased net inflows into the economy.
Economic Performance & Real GDP Growth
The UAE’s economy continued its strong trajectory with:
- Real GDP growth estimated at 4.0%.
- Nominal GDP projected to reach AED 2 trillion, up from AED 1.9 trillion in 2023.
Housing & Capital Market Developments
The CBUAE introduced initiatives to support national housing programs, offering more flexibility in mortgage requirements. Support through national housing funds reached AED 6.1 billion in 2024.
Additionally, to strengthen the local capital market, the total outstanding Certificates of Deposit (CDs) reached AED 209 billion, ensuring high market liquidity. The CBUAE is also one of the first central banks globally to issue Islamic CDs, with balances reaching AED 42 billion in 2024.
Regulatory Advancements in the Financial Sector
To enhance regulation and supervision of financial institutions, the CBUAE introduced:
- 139 new regulations, standards, and guidelines between 2018 and 2024.
- Repealed 307 outdated regulations to modernize the financial sector.
These steps underscore the UAE’s commitment to strengthening its financial ecosystem and ensuring global competitiveness.
Final Thoughts
The UAE banking sector’s growth in 2024 highlights strong economic fundamentals and strategic financial policies. With continued investments in digital transformation and regulatory advancements, the UAE is poised for sustained financial success.
