The Central Bank of the UAE (CBUAE) issued its Financial Stability Report 2025. The report points to a resilient banking system alongside continued progress on the country’s digital payment infrastructure.
It credited the UAE’s positive economic performance and the banking sector’s robust capitalisation, liquidity, and profitability for the overall stability picture.
UAE banking system assets grew 17.1% to AED 5.3 trillion by the end of 2025.
The loan portfolio expanded 17.8%, driven mainly by domestic lending across retail and private corporate segments. Asset quality also improved.
The non-performing loan ratio fell to 3.3% in 2025, down from 4.7% in 2024 and 8.2% in 2020. Net profits rose 11.7% to AED 90.8 billion.
The Capital Adequacy Ratio stood at 17.0%, well above minimum regulatory requirements.
CBUAE’s 2025 supervisory stress tests confirmed the sector’s resilience to severe economic shocks.
Under the adverse scenario, the average Common Equity Tier 1 capital ratio fell from 14.1% to a low of 11.1% during the stress-test horizon.
It stayed above minimum requirements throughout.
Progress on Aani and Jaywan Payment Platforms
The report singled out continued development of the UAE’s financial infrastructure and payment systems under the Financial Infrastructure Transformation (FIT) Programme.
CBUAE said this work supports the efficiency and resilience of the wider financial system.
Progress on Aani, the Instant Payments Platform, and Jaywan, the UAE’s national card payment scheme, stood out alongside developments in cross-border payments.
Aani launched in October 2023 with 10 participating institutions.
Users can send and receive money in real time using just a phone number, email address, or QR code, without needing an IBAN.
Jaywan, the UAE’s first domestic card scheme, began issuing cards in July 2026.
First Abu Dhabi Bank and Commercial Bank of Dubai were among the first issuers.
The scheme offers an alternative to international card networks for point-of-sale, ATM, and online transactions.
Both platforms operate under Al Etihad Payments, a CBUAE subsidiary. The UAE Ministry of Finance became the first federal entity to adopt both for collecting service fees and fines earlier this month.
H.E. Khaled Mohamed Balama, Governor of the CBUAE, said the report affirms the UAE financial system’s strength. He added that it shows the system’s ability to keep supporting the economy efficiently.
He said CBUAE will continue strengthening its supervisory and prudential frameworks to prepare the financial system for future risks.
Featured image: Edited by Fintech News UAE based on an image by graphiclibrary via Magnific.
