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UAE financial sector is strong and resilient amid regional conflict, says Central Bank
Banks, financial institutions, and insurance companies are operating normally and continue to deliver their services without disruption, says regulator
- PUBLISHED: Thu 5 Mar 2026, 5:29 PM
[Editor's Note: Follow Khaleej Times live blog amid Israeli, US strikes on Iran for the latest regional developments.]
The UAE banks are “well-positioned” to navigate ongoing geopolitical challenges the region is facing due to the US-Israel and Iran conflict, the Central Bank of the UAE said on Thursday.
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Khaled Mohamed Balama, governor of the Central Bank of the UAE, affirmed that the UAE’s banking and financial sector continues to demonstrate the highest levels of resilience and stability.
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He noted that banks, financial institutions, and insurance companies across the country are operating normally and continue to deliver their services to customers and the public efficiently and without disruption nationwide.
Despite the successive geopolitical developments witnessed across the region during this period, the Central Bank and the UAE’s banking and financial sector have consistently demonstrated a strong capacity for resilience, adaptability, and sustained growth. This has reinforced the UAE’s position as a trusted and secure destination and a leading financial hub at both the regional and global levels.
The UAE’s banking and financial sector continues to maintain very strong levels of capital adequacy and liquidity. The capital adequacy ratio currently stands at 17 per cent, while the liquidity coverage ratio exceeds 146.6 per cent, both significantly above the regulatory thresholds recommended by international supervisory bodies and global financial institutions.
In addition, total assets of the UAE banking and financial sector now exceed Dh5.42 trillion, reflecting the scale, resilience, and strength of financial institutions operating in the country, as well as their capacity to meet obligations and sustain support for economic activity under various conditions.
“I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability. These systems are supported by advanced operational and technological frameworks that ensure the seamless, secure, and uninterrupted functioning of banking and financial services,” said Balama.
Financial and banking institutions operating in the UAE implement advanced frameworks for risk identification, risk management, and business continuity in line with leading international standards and best practices. This further strengthens their capacity to address potential developments and emerging challenges with agility and resilience.
The Central Bank of the UAE said it maintained close coordination with relevant authorities and financial institutions to monitor developments, ensuring full operational readiness and the uninterrupted provision of banking and financial services across the country.
The Central Bank noted that it continuously monitors key indicators of financial stability and liquidity across the banking and financial sector.
“We also conduct regular assessments and stress-testing exercises to ensure the continued soundness and resilience of the financial system,” he added.
The governor assured that the bank maintains full operational readiness to provide the necessary support to safeguard the achievements realised over more than five decades of progress and prosperity.
