Chaired by His Highness Sheikh Mansour bin Zayed Al Nahyan, the Central Bank of the UAE (CBUAE) held its second board meeting of the year and approved a major UAE resilience package to support financial stability.
The meeting confirmed that the UAE’s financial system remains strong and stable despite ongoing global and regional economic challenges. Officials reported no significant impact on the banking sector or payment systems.
Strong Financial Position Supports UAE Resilience Package
The CBUAE highlighted the country’s solid financial foundation, which underpins the new UAE resilience package:
- Over AED 1 trillion in foreign exchange reserves
- A 119% monetary base cover ratio
- A banking sector valued at AED 5.4 trillion
UAE banks also maintain high liquidity levels, with around AED 920 billion held at the central bank, including more than AED 400 billion in reserves.
Five Pillars of the UAE Resilience Package
The newly approved UAE resilience package focuses on five key areas to ensure banks can continue supporting the economy:
1. Monetary Policy Support
Banks can access up to 30% of their reserve balances and benefit from additional liquidity facilities in AED and USD.
2. Liquidity and Funding Relief
Temporary easing of liquidity and funding requirements gives banks more flexibility to lend and support businesses.
3. Capital Buffer Flexibility
The release of capital buffers allows banks to use extra capital to boost lending and economic activity.
4. Credit Risk Measures
Banks can delay the classification of loans for individuals and companies affected by current economic conditions.
5. Continued Financial Support
Banks are encouraged to maintain financing services to support customers and the wider UAE economy.
Commitment to Financial Stability
The CBUAE reaffirmed its readiness to take further action if needed to protect the financial system. The UAE resilience package reflects a proactive approach to maintaining stability and strengthening the country’s global financial position.
Leadership Vision Driving Economic Strength
His Highness Sheikh Mansour bin Zayed emphasized that the UAE’s economic strength comes from long-term planning and strong leadership.
He noted that proactive policies and forward-looking strategies have played a key role in building a resilient and competitive financial system, reinforcing global confidence in the UAE economy.
