Strengthening the UAE Financial Sector: Key Highlights from CBUAE’s 2024 Annual Report

On April 7, 2025, the Central Bank of the United Arab Emirates (CBUAE) published its 2024 Annual Report, outlining “noteworthy achievements and projects” that have been essential to strengthening its assistance to the country’s economy, improving regulatory mechanisms, upholding its financial viability, and developing the banking, insurance, and financial industries.

The report provides a detailed summary of economic, monetary, and financial developments on a local and international scale. It draws attention to the developments made in initiatives meant to support a “sustainable financial future” and strengthen the UAE’s standing as a major force in world economic growth.

The UAE’s real GDP increased by 3.9% in 2024, indicating a notable improvement in the country’s economic performance. Strong success in the oil and non-oil sectors was the main driver of this expansion.

The CBUAE forecasts growth to accelerate to 4.7% in 2025, demonstrating the country’s continued economic diversification and resiliency. 

In addition to this, Non-oil foreign trade grew by 13.8%, reaching AED 2.8 trillion, supported by the contribution of the Comprehensive Economic Partnership Agreements.

CBUAE’s work in collaboration with federal and local authorities removed  UAE from the Financial Action Task Force’s (FATF) “enhanced monitoring” list, marking a key milestone in “combating money laundering and terrorist financing.”

In addition, the CBUAE introduced the electronic “Know Your Customer” platform to improve “identification verification procedures” and fortify financial infrastructure.

The report also pinpoints that the banking industry’s outstanding growth continues, as seen by the 12.0% increase in total assets reaching  AED 4.56 trillion. The UAE now leads the Middle East in banking assets because of this expansion.

Profitability, liquidity, financial reserves, and high capitalization levels all show the sector’s solid foundation. The insurance industry grew as well; gross written premiums reached AED 64.8 billion.

The CBUAE increased banking sector capital reserves in 2024 to support monetary stability and handle cyclical fluctuations.

This proactive plan improves the financial sector’s capacity to adapt to “shifts in the global economy.” The CBUAE also assessed “the potential impacts of climate change” on the banking sector and strengthened stress testing as part of its regulatory oversight.

With a focus on liquidity and monetary regulation, the CBUAE kept innovating. Notable wins include:

• Moving the United Arab Emirates up from sixth to third position in the world’s Islamic finance rankings
• Receiving the Mohammed bin Rashid Government Excellence Award’s Leading Federal Entity Award (500+ workers)
• Received the Global Cybersecurity Index’s “Pioneering Model” designation

The CBUAE launched several important projects to assist the Financial Infrastructure Transformation (FIT) program, such as the instant payment platform “Aani” and the domestic card program “Jaywan” in the United Arab Emirates.

It also established a virtual stablecoin licensing system and the first Open Finance policy in history, improving “financial growth and adapting to developments” in the global market.

The CBUAE’s continued dedication to consumer protection led to the establishment of “Sanadak,” the first independent ombudsman unit in the MENA region, which was created to effectively settle banking and insurance disputes and maximize consumer trust.

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Emiratization remained a top priority for the CBUAE in 2024, as licensed financial institutions surpassed their goals by hiring 2,866 UAE citizens, a 152.9% increase. The overall number of UAE citizens holding important positions increased by 20.22% to 7,886.

With an initial focus on evaluating market size and profitability, the CBUAE initiated the development phase of the “Sustainable Monetary Sukuk” initiative as part of its target to advance sustainable finance.

Khaled Mohamed Balama, Governor of the CBUAE, commented, “The CBUAE, guided by the vision of our leadership and under the direction of His Highness Sheikh Mansour bin Zayed Al Nahyan, continues to enhance financial and monetary strength, develop regulatory frameworks, and lead financial innovation. Our transformative initiatives in 2024 have contributed to making the financial sector more efficient and competitive while building a more resilient and sustainable financial system. These efforts culminated in winning the Leading Federal Entity Award at the Mohammed bin Rashid Government Excellence Award.”

As per the report, the UAE has accomplished a strong position in the financial ecosystem of having a stable and secure financial system. Its efforts to combat money laundering and terrorist financing are marvellous and worth applauding.