UAE Central Bank Says Banks Fully Operational Amid Regional Tensions

H.E. Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, noted that the country’s financial sector continues to demonstrate resilience, supported by strong capital buffers, robust liquidity levels, and uninterrupted banking services across the country.

“The UAE’s banking and financial sector continues to demonstrate the highest levels of resilience and stability,” Balama said in the statement released by the central bank. He added that banks and financial institutions across the UAE are operating normally and continuing to provide services efficiently to customers and businesses.

The statement comes as regional geopolitical developments have drawn attention to financial stability across the Middle East. In response, regulators in the UAE moved quickly to reassure markets and the public that the country’s financial infrastructure remains secure and functioning smoothly.

According to figures released by the Central Bank of the UAE, the country’s banking sector maintains strong financial fundamentals. The sector’s capital adequacy ratio stands at approximately 17 percent, while the Liquidity Coverage Ratio exceeds 146.6 percent. Both figures remain well above internationally recommended regulatory thresholds designed to ensure banks can withstand financial shocks.

Beyond strong regulatory ratios, the scale of the UAE’s financial system also reflects the country’s expanding role as a regional financial hub. The central bank reported that total assets across the UAE banking and financial sector now exceed approximately $1.48 trillion (AED 5.42 trillion), underscoring the size and depth of the country’s financial institutions.

Balama also emphasized that the country’s financial infrastructure, including payment networks and digital banking systems, continues to operate without disruption. “I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability,” he said.

Authorities noted that banks operating in the UAE maintain comprehensive risk-management frameworks aligned with international regulatory standards. These frameworks are designed to ensure financial institutions can identify and respond to potential risks while maintaining strong operational continuity.

The central bank also maintains close coordination with financial institutions and relevant authorities to monitor developments and ensure operational readiness across the financial system. According to the regulator, this coordination helps support the uninterrupted provision of banking and financial services nationwide.

The UAE’s financial sector has built a reputation for stability over the past several decades, supported by regulatory oversight, diversified financial institutions and a growing financial services ecosystem. The country has also invested heavily in modern payment infrastructure and digital banking technologies, helping strengthen operational resilience across the sector.

Strong capital buffers and liquidity reserves are key elements in maintaining financial stability during periods of uncertainty. When banks maintain sufficient capital and liquid assets, they are better positioned to continue lending, support economic activity, and absorb unexpected financial shocks.

Recent performance across the UAE banking sector has reinforced that stability. Several of the country’s largest banks have reported strong earnings and balance-sheet growth in recent years, reflecting sustained demand for lending and financial services across sectors including trade, infrastructure, and real estate.

The central bank said it continues to closely monitor developments and maintain coordination with financial institutions and relevant authorities to ensure operational readiness across the financial system. The regulator emphasized that banking and financial services across the UAE remain fully operational and are being delivered without disruption.

Balama reiterated that maintaining the resilience of the financial sector remains a central priority for the regulator. “The Central Bank of the UAE continues to maintain close coordination with relevant authorities and financial institutions to closely monitor developments, ensuring full operational readiness and the uninterrupted provision of banking and financial services across the country,” he said.

The UAE’s financial sector has developed steadily over the years through regulatory oversight, institutional development, and the expansion of modern financial infrastructure. These factors have helped strengthen the country’s position as a major financial hub in the region.

The central bank’s message to businesses, investors, and residents is clear, with the UAE’s banking sector remaining resilient, well capitalized, and capable of navigating external challenges.