CBUAE's 2024 Achievements Drive Financial Sector Growth And Stability In The UAE

The Central Bank of the UAE (CBUAE) has achieved notable milestones in 2024, enhancing the financial, banking, and insurance sectors. These accomplishments highlight the CBUAE's critical role in ensuring monetary stability, managing reserves, and fostering economic growth through digital innovation. The bank's efforts have strengthened the UAE's global competitiveness and leadership.

The CBUAE has been recognised with several prestigious awards for its achievements. It received the Leading Federal Entity Award at the Mohammed bin Rashid Government Excellence Award 2024. This award acknowledges excellence in adopting integrated strategies aligned with global best practices. Khaled Mohamed Balama, Governor of the CBUAE, was named "Central Banker of the Year 2024 for the Middle East" by The Banker.

The UAE's financial sector has seen substantial growth under CBUAE's guidance. The banking sector reached AED4.457 trillion in assets by November 2024, up from AED4.075 trillion in 2023. The net non-performing loan ratio improved to 2.1% from 2.4% in 2023, indicating better asset quality.

The insurance sector also expanded significantly in 2024, with gross written premiums rising to approximately AED64.5 billion from AED53.3 billion in 2023. These figures reflect a robust financial environment supported by strategic initiatives.

To position the UAE as a global financial hub, the CBUAE is implementing the FIT Programme with nine key initiatives, achieving an 85% completion rate. This programme includes innovative digital payment solutions like "Jaywan" and cross-border payments using "mBridge." The Instant Payment Platform "Aani" and Real Time Gross Settlement (RTGS) system were also launched.

The CBUAE is developing an Open Finance platform to establish global standards for open finance based on successful experiences worldwide. This initiative aims to provide a secure connection to access banking and insurance markets while ensuring customer consent for third-party access regulated by the CBUAE.

International Collaborations and Regulatory Frameworks

The CBUAE collaborates with international entities on projects like Project Aperta to enhance cross-border interoperability for financial institutions through trusted networks. This collaboration aims to address challenges businesses face in trade finance when seeking financial products.

In regulatory advancements, over 139 new regulations were issued between 2018 and 2024, reflecting a commitment to modernising financial services. Key regulations include the world's first Open Finance framework and stablecoins regulation in the Middle East.

Emiratisation Efforts and Economic Performance

Emiratisation remains a priority for the CBUAE, with initiatives like "Ethraa" exceeding targets by placing over 2,866 Emiratis in roles against a target of 1,875 positions in 2024. This supports national economic goals and future plans.

The UAE's economy continues strong performance under visionary leadership, with real GDP growth estimated at 4%. Nominal GDP is projected to reach AED2 trillion in 2024 compared to AED1.9 trillion in 2023.

Consumer Protection and Market Conduct

The CBUAE established "Sanadak," an independent Ombudsman Unit aimed at resolving disputes efficiently within the banking sector. This initiative enhances consumer trust and protection while improving government service indicators.

Efforts led to increased customer satisfaction within banking services by establishing clear engagement rules between financial institutions and customers, contributing to further growth and stability in both sectors.

The CBUAE issued commemorative coins marking its 50th anniversary, celebrating its contributions to economic development aligned with leadership's vision of establishing UAE as a leading global financial hub.

With inputs from WAM