CBUAE 2023 Report Highlights Resilient Financial Sector and 6.2% Non-Oil Growth

The Central Bank of the United Arab Emirates (CBUAE) has released its Financial Stability Report for 2023, highlighting the robust health and resilience of the UAE’s financial system.

The report underscores the strength of the UAE banking sector, supported by strong capital buffers, improved asset quality, and increased profitability.

Despite global economic challenges, the UAE’s real GDP grew by 3.6% in 2023, with a 6.2% expansion in the non-oil sector, driven by tourism, real estate, and finance. The report attributes this resilience to favourable domestic conditions and the CBUAE’s effective policy interventions under its macroprudential mandate.

Key highlights include the successful stress test conducted by the CBUAE, which confirmed the banking system’s ability to withstand inflation and market uncertainties. The insurance sector also maintained a strong solvency position, while finance companies reported improved liquidity and profitability. The exchange business saw continued growth, reflecting steady activity.

Significant progress was made in financial infrastructure, with the launch of the Instant Payment Platform "Aani" and advancements in the Central Bank Digital Currency programme, with the Digital Dirham expected in 2024. Additionally, the UAE’s successful exit from the Financial Action Task Force’s enhanced monitoring process in 2024 highlighted the country's efforts in combating financial crime.

Governor Khaled Mohamed Balama stated,

“The 2023 Financial Stability Report reflects our commitment to enhancing financial infrastructure and fostering sustainable economic growth. Our proactive approach will ensure the UAE’s financial sector remains resilient and competitive.”

The establishment of the Financial Stability Council further bolsters efforts to safeguard financial stability, positioning the UAE to navigate future challenges while promoting sustainable development.

News Source: Emirates News Agency