The UAE's overall economic growth is recovering, reaching 3.9 percent, largely due to a resurgence in various economic sectors, as stated by the Central Bank of the UAE on Thursday. The Central Bank released its 2023 Annual Report, detailing domestic, regional, and global financial and economic trends, along with the CBUAE's strategic advancements and achievements in 2023. The report highlights that the UAE's real GDP growth was 3.6 percent in 2023, with the financial sector showing a robust 11.1 percent increase in total assets, exceeding Dh4 trillion. The banking system was noted to have adequate capitalization, profitability, and liquidity. The CBUAE made substantial progress 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 improvements in key indicators, based on the CBUAE's internal comparison methodology using IMF Financial Soundness Indicators. The CBUAE actively utilized a macroprudential policy framework to maintain financial stability and conducted stress tests to evaluate banks' resilience. Prudential examinations increased to 247 from 181 in 2022, with climate-related risks now part of the regulatory framework. The CBUAE also completed its action plan with the Financial Action Task Force, exiting enhanced monitoring. In line with 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. Consumer protection was enhanced with the issuance of the Ombudsman Regulation, leading to the establishment of Sanadak, the MENA region's first independent financial ombudsman unit. Emiratisation efforts saw 2,720 Emiratis join the financial sector, exceeding targets. The CBUAE also launched the COP28 UAE TechSprint to foster sustainable finance technology, receiving 126 proposals from 31 countries, and played a key role in mobilizing Dh1 trillion in sustainable finance by 2030. Khaled Mohamed Balama, Governor of the CBUAE, emphasized the institution's commitment to financial stability, digital transformation, and global competitiveness, celebrating its 50th anniversary in 2023.
Text: Lara Palmer
13.06.2024
Central Bank of the UAE's Annual Report Highlights Strong Recovery and Strategic Achievements