The UAE’s economy experienced a growth rate of 3.6% in 2023, as reported by the Central Bank of the UAE (CBUAE) in its annual report. The CBUAE projects overall output growth to rebound to 3.9% in 2024, driven by a recovery across various economic sectors.
The financial sector showcased robust performance in 2023, achieving an 11.1% increase in total assets, surpassing AED 4 trillion. The banking system maintained appropriate capitalisation, strong profitability, and sufficient liquidity throughout the year.
The Central Bank highlighted its continued efforts to promote Emiratisation within the financial sector, successfully integrating 2,720 Emiratis in 2023, exceeding the target of 1,875.
Significant progress was also made towards the Central Bank’s 2023-2026 strategy, which focuses on areas such as financial stability, monetary policy, banking, insurance, financial crime supervision, consumer protection, and digitisation.
The UAE banking system improved across key soundness indicators based on the Central Bank’s internal comparison methodology, leveraging data from the IMF Financial Soundness Indicators.
In 2023, the CBUAE conducted 247 prudential examinations, an increase from 181 in 2022, to ensure the safety and soundness of the financial sector. For the first time, climate-related risks were incorporated into the regulatory and supervisory framework for licensed financial institutions (LFIs).
The Central Bank’s enhanced efforts in financial crime supervision were pivotal in completing the action plan agreed with the Financial Action Task Force (FATF), leading to the UAE’s exit from FATF’s enhanced monitoring process.
Under its Financial Infrastructure Transformation (FIT) programme, the CBUAE launched several innovative payment platforms in 2023. Notable initiatives include the establishment of an Instant Payments Platform, Aani, and the UAE’s first Domestic Card Scheme, Jaywan.
