The UAE Bank Federation (UBF) said in its 2018 annual report that banks in the UAE are well-capitalised, highly liquidated, sound and stable, which leads to financial stability in the UAE.
By the end of 2018, total banking assets reached $780 billion which bolstered the UAE banking sector’s position as the largest banking sector in the Gulf region.
The capital adequacy ratio (CAR) of the UAE banks reached 17.5 percent at the end of 2018. Their deposits also increased by 8 percent during the same period. While deposits from residents increased by 7 percent, deposits from the government increased by 16 percent, according to the UAE Bank Federation.
“The UAE banking and financial sector have maintained its robustness and high performance with a strong and diversified national economy, a safe and stable political and economic climate at the national level, and the optimal use of financial and human resources,” Abdul Aziz Al Ghurair, chairman of UAE Banks Federation told the media.
He added, “In spite of regional and global uncertainty, the report also highlights that the UAE banking and financial sector has once again proven its resilience and potentiality. Growing deposits, coupled with sufficient liquidity and increased demand for credit, enabled banks to increase lending.”
Over the years, UAE Bank Federation has also launched a number of schemes aimed at developing the UAE’s banking sector. One of the major initiatives undertaken by the federation was the creation of the Emirates Digital Wallet Company. It was created with the participation of 16 banks to boost financial inclusion in the UAE.
The UAE Banks Federation consists of 22 national banks, 28 foreign banks, and two special status banks.