Central Bank of the UAE has reassured residents and businesses that the country’s financial system remains strong, stable and fully operational despite rising geopolitical tensions across the region.

The regulator said banks, financial institutions and insurance companies across the UAE continue to operate normally, delivering services to customers without disruption.

Khaled Mohamed Balama said the sector remains resilient and well-positioned to navigate evolving regional developments.

“The UAE’s banking and financial sector continues to demonstrate the highest levels of resilience and stability,” he said.

Strong foundations of the financial sector

According to the central bank, the sector is built on strong governance frameworks, diversified institutions and proactive risk management systems designed to respond quickly to regional and global economic shifts.

Balama noted that the regulator has played a key role in strengthening the country’s financial stability and global reputation.

Strong capital and liquidity buffers

Financial indicators show that the UAE banking sector is entering the current period of regional uncertainty from a position of strength.

• Capital adequacy ratio: around 17%
• Liquidity Coverage Ratio: above 146.6%

Both indicators remain well above international regulatory requirements, reflecting strong financial buffers across the sector.

Total assets in the UAE banking system have also grown significantly, exceeding Dh5.42 trillion, highlighting the scale and stability of financial institutions operating in the country.

These strong capital and liquidity levels help banks absorb economic shocks and maintain lending activity even during periods of uncertainty.

The Central Bank also confirmed that banking infrastructure, digital platforms and payment networks continue to operate smoothly across the country.

“I reaffirm that the UAE’s banking systems, payment systems and national financial infrastructure continue to operate with full efficiency and stability,” Balama said.

Continuous monitoring and preparedness

Authorities said the financial sector remains under close monitoring, with ongoing coordination between the central bank, financial institutions and government entities.

Banks in the UAE operate under regulatory frameworks that require continuous risk monitoring, stress testing and business continuity planning aligned with international best practices.

The Central Bank said it maintains a wide range of monetary and prudential policy tools to support financial stability when needed.

Balama reaffirmed the regulator’s commitment to safeguarding the sector’s stability and supporting the UAE’s long-term economic growth.

“I reaffirm the Central Bank of the UAE’s unwavering commitment to closely monitor developments, maintain full operational readiness and provide the necessary support to safeguard the achievements realised over more than five decades of progress and prosperity,” he said.

The Ministry of Education, along with the Ministry of Higher Education and Scientific Research, on Wednesday, March 4, announced that the commencement of spring break for all academic institutions has been pushed forward to March 9, with the last working day to be March 6. Normal classes are scheduled to resume from March 30. 

The academic calendar placed the spring break dates originally from March 16 and ending on March 29 which has now moved from March 9 to March 22. The change comes in light of the ongoing regional conflict, with the safety of students and staff at schools and universities as the highest priority. 

Classes had transitioned to online learning at the beginning of this week as a precautionary measure for all students and staff, which was further extended up to the end of this week. Exams for students have also been shifted to a remote format, allowing them to complete their assessments safely from home. 

Students, parents, and staff are advised to stay updated via official channels only, as the measures aim to protect the safety of all in the education sector.

(By Shura Kola)

The Emirates Drug Establishment (EDE) has activated a new regulatory mechanism aimed at ending monopolistic practices in the UAE’s medical product market, marking a significant shift in how pharmaceuticals are distributed across the country.

Introduced under the 2024 federal law governing medical products, pharmacists and pharmaceutical establishments, the measure requires pharmaceutical companies to appoint more than one authorised agent for each medical product marketed in the UAE.

Officials say the move is designed to strengthen pharmaceutical security, ensure stable medicine supplies and enhance national preparedness during emergencies.

Ending single-agent control

Under the new framework, companies can no longer depend on a single distributor for a specific product.

By mandating multiple authorised agents, the EDE aims to:

• Prevent supply disruptions
• Improve distribution efficiency
• Increase supply-chain flexibility
• Eliminate monopolistic control over essential medicines

The authority said the mechanism will widen treatment options and promote healthier competition among distributors, ultimately benefiting patients and healthcare providers.

Boosting investment and market sustainability

Beyond addressing monopolies, the initiative is expected to make the UAE pharmaceutical sector more attractive to investors.

Officials note that diversified distribution channels reduce operational risks and enhance long-term sustainability, a key pillar in building a resilient healthcare ecosystem.

The reform aligns with the UAE’s broader strategy to modernise regulatory systems and position the country as a regional hub for life sciences and pharmaceutical trade.

Saeed bin Mubarak Al Hajeri, Minister of State and Chairman of the EDE’s Board of Directors, said the initiative reflects the UAE’s public policy approach to developing a robust national pharmaceutical ecosystem.

He emphasised the authority’s commitment to:

• Diversifying supply chains
• Enhancing regulatory efficiency
• Creating a flexible legislative environment
• Protecting public health

Officials stress that the mechanism goes beyond market competition. It serves as a strategic safeguard to ensure uninterrupted access to medicines during global disruptions or health emergencies.

What it means for the healthcare sector

The activation of the mechanism signals a transition toward a more competitive, transparent and secure pharmaceutical market.

• For patients: Greater consistency in medicine availability
• For distributors: Increased competition and operational flexibility
• For investors: A stronger, more sustainable regulatory environment

As implementation of the 2024 federal law continues, further refinements are expected to shape the future of the UAE’s pharmaceutical supply chain and reinforce national health security.