The Central Bank of the UAE has rolled out a new financial support package designed to keep banks strong and ensure they continue supporting and safeguarding the broader economy amid global and regional uncertainty.
The package was endorsed during a high-level board meeting chaired by Sheikh Mansour bin Zayed Al Nahyan, underscoring the UAE leadership’s proactive approach to maintaining economic stability.
Built around five key pillars, the initiative is designed to provide banks with greater liquidity, enhanced flexibility, and temporary regulatory relief, ensuring they can continue to support businesses and individuals during uncertain times.
Under the new measures, banks will gain expanded access to liquidity, including the ability to utilise reserve balances and secure term funding in both dirhams and US dollars. This step is expected to keep credit flowing across key sectors of the economy.
The Central Bank has also introduced temporary easing of liquidity and funding requirements, giving financial institutions more room to continue lending. Capital buffer requirements will be relaxed as well, allowing banks to deploy excess capital to support economic activity.
Additionally, new provisions will offer greater flexibility in managing credit risk, including delaying the classification of certain loans affected by current market conditions—providing relief to borrowers facing temporary challenges.
Authorities emphasised that banks are expected to maintain lending and continue supporting customers as part of the UAE’s broader economic response strategy.
Despite global pressures, the UAE’s financial system has shown strong resilience. During its meeting, the Board confirmed that current market conditions have had no significant impact on the health of the banking sector or the efficiency of payment systems.
The Central Bank also highlighted the country’s robust financial position, with foreign exchange reserves exceeding AED 1 trillion and a strong monetary base. The UAE’s banking sector, valued at over AED 5.4 trillion, continues to demonstrate solid fundamentals.
With liquidity levels remaining high and reserves strong, the CBUAE reaffirmed its readiness to take further action if needed to protect financial stability and sustain economic growth.