UAE banking assets surge 17.1% to $1.44 trillion in 2025

The UAE’s banking sector continued to expand in 2025, with total assets climbing 17.1% to $1.44 trillion as stronger lending, improving asset quality and rising profits supported the country’s financial system.

According to the Central Bank of the UAE’s (CBUAE) Financial Stability Report 2025, the sector’s loan portfolio grew by 17.8%, largely driven by domestic lending across retail and private corporate segments.

Banks also reported an improvement in asset quality. The non-performing loan ratio fell to 3.3% in 2025, down from 4.7% a year earlier and 8.2% in 2020.

Capital levels remained above regulatory requirements, with the sector’s Capital Adequacy Ratio (CAR) standing at 17% at the end of the year.

Profitability also strengthened, with net profits rising 11.7% to $24.7 billion in 2025, supported by higher operating income. Liquidity remained strong as deposits continued to grow.

The central bank’s 2025 supervisory stress tests also indicated that lenders could withstand severe economic and financial shocks. Under an adverse scenario, the average Common Equity Tier 1 (CET1) capital ratio fell from 14.1% to a low of 11.1% over the stress-test period, but remained above minimum regulatory requirements.

“The Financial Stability Report 2025 affirms the strength and resilience of the UAE financial system and its ability to continue supporting the national economy efficiently, underpinned by adequate capital and liquidity, improved asset quality, and continued growth in credit, deposits and profitability,” said Khaled Mohamed Balama, Governor of the CBUAE.

Beyond traditional banking, the report pointed to resilience across Islamic banking and insurance, while highlighting the UAE’s efforts to develop its financial and payments infrastructure under the Financial Infrastructure Transformation (FIT) Programme.

The push includes Aani, the UAE’s instant payments platform, and Jaywan, its national card payment scheme, alongside developments in cross-border payments as the country continues to advance the digital transformation of its financial system.

“The CBUAE will continue to strengthen its supervisory and prudential frameworks and enhance the financial system’s preparedness to address future risks and challenges, contributing to safeguarding financial stability and supporting sustainable economic growth,” Balama added.