The Central Bank of the UAE announced on Thursday that the UAE’s real overall output growth has rebounded to 3.9 per cent, driven by a recovery across various sectors of the economy. The Central Bank released its 2023 Annual Report, detailing domestic, regional, and global financial and economic developments, along with the CBUAE’s strategic actions and progress. The report highlights that the UAE’s real GDP growth was 3.6 per cent in 2023, with the financial sector showing robust growth of 11.1 per cent in total assets, exceeding Dh4 trillion. The banking system maintained adequate capitalization, profitability, and liquidity. The CBUAE made significant strides in its 2023-2026 Strategy, focusing on financial stability, monetary policy, banking, insurance, financial crime supervision, consumer protection, and digitization. The UAE banking system showed improvement in key indicators, based on the CBUAE’s internal comparison methodology using IMF Financial Soundness Indicators. The CBUAE actively used a macroprudential policy framework to maintain financial stability and conducted stress tests to evaluate banks’ resilience. Prudential examinations increased to 247 in 2023, up from 181 in 2022, and climate-related risks were integrated into the regulatory framework. The CBUAE also completed its action plan with the Financial Action Task Force (FATF) and exited the enhanced monitoring process. Under its Financial Infrastructure Transformation (FIT) program, the CBUAE introduced innovative payment platforms, including the Instant Payments Platform, Aani, and the UAE’s first Domestic Card Scheme, Jaywan. The CBUAE established Sanadak, the MENA region’s first independent financial ombudsman unit, to handle consumer complaints. Emiratisation in the financial sector saw 2,720 Emiratis joining, exceeding the target of 1,875, with a 31 per cent Emiratisation rate in leading roles in the banking sector. The CBUAE launched the COP28 UAE TechSprint to foster sustainable finance technology innovation, attracting 126 proposals from 31 countries. The CBUAE also played a key role in mobilizing Dh1 trillion in sustainable finance by 2030. Governor Khaled Mohamed Balama emphasized the CBUAE’s commitment to financial stability, digital transformation, and enhancing the UAE’s global competitiveness.
Text: Lara Palmer
13.06.2024
Central Bank of the UAE's 2023 Annual Report Highlights Robust Economic and Financial Developments