Dubai :The UAE Central Bank (CBUAE) has forecasted strong economic growth for the nation, with GDP expected to grow 4.4% in 2025 and further to 5.4% in 2026, following a 4% growth in 2024. The outlook, detailed in the 2024 Financial Stability Report, reflects robust performance in non-oil sectors and a resilient economic and banking system.
The Central Bank highlighted the UAE’s well-capitalized and liquid banking sector, sound asset quality, and effective risk management as key contributors to continued stability. Stress tests confirmed banks’ ability to maintain lending, even under adverse conditions.The report praised the UAE Financial Stability Council, chaired by Sheikh Mansour bin Zayed Al Nahyan, for enhancing coordination among financial authorities and strengthening macro-financial oversight.Despite rising global risks, the UAE maintained strong economic conditions in 2024. CBUAE Governor Khaled Mohamed Balama reaffirmed the Bank’s commitment to supporting sustainable growth through prudent regulation and proactive risk monitoring.
Non-bank financial institutions also showed solid performance, with the insurance sector growing 21.4% to reach AED 64.8 billion in total premiums. The UAE’s rapid digital transformation continued in 2024, with advancements in FinTech, AI integration, digital payments, and initiatives like the “Jaywan” card and “Aani” instant payment platform enhancing the financial ecosystem.
The Central Bank believes the UAE’s stable foundation and forward-looking policies will sustain long-term economic resilience and growth.
