The UAE banking sector experienced a remarkable year in 2025, with total assets climbing to Dh5.3 trillion—a significant 17.1 percent increase. According to the Central Bank of the UAE’s Financial Stability Report, this growth was primarily driven by a robust 17.8 percent surge in lending, particularly within the retail and private corporate sectors. This financial momentum was reflected in the bottom line as well, with net profits rising by 11.7 percent to reach Dh90.8 billion, bolstered by stronger operating income and consistent growth in deposits, which helped the banks maintain healthy liquidity levels.

Beyond profitability, the sector demonstrated improved stability and resilience. The ratio of non-performing loans dropped to 3.3 percent, a notable improvement from previous years, while capital buffers remained well above regulatory standards with a 17.0 percent Capital Adequacy Ratio. Stress tests further confirmed that the industry is well-prepared for potential economic downturns. Simultaneously, the broader financial landscape, including the ADX and DFM markets, saw a combined market capitalization surpassing Dh4.1 trillion, supported by an uptick in green finance and the ongoing success of the Financial Infrastructure Transformation (FIT) Programme, which continues to modernize digital payment systems like Aani and Jaywan.