CBUAE 2024 Annual Report Highlights UAE's Leadership In Financial Sector Growth And Stability

The Central Bank of the UAE (CBUAE) has unveiled its 2024 Annual Report, highlighting significant achievements and initiatives. These efforts have bolstered its role in supporting national economic growth, ensuring financial stability, and enhancing monetary and supervisory legislation. The report offers an in-depth analysis of financial developments locally and globally, showcasing progress in initiatives aimed at reinforcing the UAE's leadership in global economic development.

In 2024, the UAE's economy experienced notable growth, with real GDP increasing by 3.9%. This was driven by strong performances in both the oil and non-oil sectors. The CBUAE anticipates further growth acceleration to 4.7% in 2025, underscoring the economy's resilience and diversification efforts. Non-oil foreign trade also rose by 13.8%, surpassing AED2.8 trillion, aided by Comprehensive Economic Partnership Agreements.

The banking sector in the UAE achieved remarkable progress, with total assets reaching AED4.56 trillion—a 12% increase. This positions the UAE as a leader in the Middle East regarding banking assets, supported by strong fundamentals like high capitalisation levels and stable financial reserves. The insurance sector also saw an increase in gross written premiums to AED64.8 billion.

In a bid to enhance long-term financial stability, the CBUAE increased capital reserves within the banking sector during 2024. This proactive measure aims to address cyclical fluctuations and build a resilient banking system capable of adapting to global economic changes. Stress tests were strengthened to assess banks' ability to withstand various scenarios, including climate change risks.

The CBUAE made strides in combating money laundering and terrorist financing through collaboration with federal and local authorities. These efforts led to the UAE's removal from the Financial Action Task Force's (FATF) "enhanced monitoring process" jurisdictions list.

As part of its vision to be among top central banks globally, the CBUAE implemented innovative plans that earned it accolades such as the Leading Federal Entity Award at the Mohammed bin Rashid Government Excellence Award. The UAE also advanced from sixth to third place in global Islamic finance rankings and received recognition as a "Pioneering Model" according to the Global Cybersecurity Index.

Financial Infrastructure Transformation

The CBUAE launched several initiatives under its Financial Infrastructure Transformation (FIT) programme. These include "Jaywan," a domestic card scheme; "Aani," an instant payment platform; and the world's first Open Finance regulation. Additionally, it introduced a licensing system for virtual stablecoins and an electronic "Know Your Customer" platform for secure identity verification.

To enhance consumer protection, the CBUAE introduced "Sanadak," MENA’s first independent ombudsman unit for resolving banking and insurance disputes efficiently. This initiative aims to boost consumer confidence by ensuring fair market conduct.

Emiratisation Efforts

Emiratisation remained a strategic priority for CBUAE in 2024, aligning with leadership directives. Licensed financial institutions exceeded targets by employing 2,866 UAE nationals—an increase of 152.9%. The number of nationals in key positions rose by 20.22% to 7,886 compared to last year.

The CBUAE launched the "Sustainable Monetary Sukuk" programme development phase as part of promoting sustainable finance and solidifying the UAE's position as an Islamic finance hub regionally and globally.

Khaled Mohamed Balama, Governor of CBUAE, stated: "The CBUAE continues its efforts to enhance financial stability under wise leadership directives." He highlighted transformative initiatives that improved financial sector efficiency and competitiveness while winning prestigious awards like the Leading Federal Entity Award at Mohammed bin Rashid Government Excellence Award.

Balama added: "We will continue our diligent work to strengthen the UAE's position as a global financial hub." He emphasised building a prosperous future for finance reflecting world confidence in their economy while committing towards sustainable development for future generations.

With inputs from WAM