The UAE has solidified its position as the leading force in the Arab banking sector, holding a substantial share of the region’s total assets.

According to the AMF’s latest Financial Stability Report, total assets in the region’s banking sector reached $4.57 trillion by the end of 2023, marking a 5% increase from $4.36 trillion in 2022.

The report indicates that the UAE leads the banking sector with 24.3% of total assets, followed closely by Saudi Arabia at 23.1%. By year-end, the Gulf Cooperation Council (GCC) banking sector is projected to represent 73.1% of the region’s total assets.

Despite ongoing global and regional economic challenges, this asset growth reflects strong market confidence in the sector. The report credits this expansion mainly to the performance of the banking sectors in the UAE, Saudi Arabia, and Qatar, which collectively account for 58.9% of total assets in the Arab banking landscape.

The UAE and Saudi Arabia reported the highest asset growth rates among Arab banks in 2023. The UAE’s banking sector experienced an 11% increase, driven by rising credit and investment levels, while Saudi Arabia recorded a 9.3% growth, primarily fueled by the real estate sector.