CBUAE In 2023: A Year Of Dedication To Financial Stability And System Integrity

His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Minister of the Presidential Court, and Chairman of the Central Bank of the UAE (CBUAE), highlighted the UAE's commitment to development and competitiveness. In 2023, the CBUAE focused on maintaining financial and monetary stability while protecting the integrity of its financial system.

In his foreword to the CBUAE's Annual Report 2023, Sheikh Mansour noted the bank's Golden Jubilee and its dedication to sustainability and innovation. He stated, "In 2023, we marked the CBUAE’s Golden Jubilee, reaffirming our commitment to fostering sustainability and innovation and keeping pace with the latest global financial, economic, and environmental developments."

The UAE’s GDP grew by 3.6 percent in 2023. The CBUAE projects a 3.9 percent increase in real GDP for 2024, driven by a 5.4 percent growth in the non-oil sector. The UAE’s commitment to sustainability was evident through its hosting of COP28, which set higher standards for climate action.

Sheikh Mansour emphasised the UAE’s ambitious climate action strategy and Net Zero 2050 initiative. He said, "The CBUAE’s efforts are aligned to the UAE leadership’s targets of mitigating climate change, particularly through the Green and Sustainable Finance Initiative aimed at addressing climate-related risks."

The CBUAE played a significant role in advancing digital transformation within the country’s financial infrastructure. Initiatives included launching Al Etihad Payments (AEP) and the UAE Domestic Card Scheme (DCS), Jaywan. Additionally, infrastructure was developed for the Central Bank Digital Currency (CBDC) and a new Instant Payments Platform (IPP), Aani.

Sheikh Mansour stated, "We launched Al Etihad Payments (AEP) to manage the digital financial infrastructure and the UAE Domestic Card Scheme (DCS), Jaywan. Additionally, we developed the necessary infrastructure for the launch of the CBUAE’s Central Bank Digital Currency (CBDC) and a new Instant Payments Platform (IPP), Aani."

Emiratisation Efforts

Emiratisation within the financial sector remains a priority for the CBUAE. In 2023, there was a significant increase in Emiratisation rates with 2,720 UAE nationals hired, surpassing the target of 1,875. The Emiratisation rate in leading jobs in banks increased by 8 percent to reach 31 percent.

Anti-Money Laundering Measures

In February 2024, the Financial Action Task Force (FATF) recognised the UAE’s strengthened frameworks for anti-money laundering and countering terrorism financing (AML/CFT). Sheikh Mansour stated that the CBUAE will continue collaborating with global central banks and international authorities to uphold AML/CFT standards.

Consumer Protection

The CBUAE issued regulations for an "Ombudsman Unit for the United Arab Emirates" followed by launching "Sandak" Unit. This is the first independent unit with legal personality to settle banking and insurance disputes in the Middle East and North Africa.

Sheikh Mansour expressed gratitude towards senior management, employees, and stakeholders for their support in achieving CBUAE’s vision of becoming a top global central bank. He concluded by expressing confidence in CBUAE's continued pursuit of excellence, innovation, and robust policymaking to enhance monetary stability.

With inputs from WAM