The Central Bank of the UAE has launched a banking support package to strengthen the country’s banking sector amid global uncertainty. Officials said the financial system remains strong and has not been significantly affected by current international challenges.
At a board meeting led by Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Central Bank of the UAE Board of Directors, the board approved the move.
The support package is designed to give banks easier access to cash and greater flexibility in managing risks. It also relaxes some rules and allows lenders to use additional capital, enabling them to continue providing credit to businesses and customers.
In addition, the package gives banks more room to support customers facing financial pressure. That approach signals the central bank wants to keep credit flowing while also maintaining confidence in the broader financial system.
The central bank said the UAE has strong financial buffers in place. Foreign reserves stand at more than AED 1 trillion, or about $270 billion.
Banks also hold high liquidity levels, with around AED 920 billion, or about $250 billion, deposited at the central bank. That total includes more than AED 400 billion, or roughly $109 billion, in reserves.
Sheikh Mansour said the CBUAE’s precautionary policies and proactive frameworks have repeatedly shown their effectiveness. His remarks underline the bank’s effort to present the package as a preventive measure rather than a response to immediate domestic stress.
The central bank also said it stands ready to introduce additional steps if needed to protect the economy and the financial system. That message is likely aimed at reassuring markets, lenders and customers that further support remains available if conditions worsen.
