09/07/2024 Finance and investment | Central Bank of the UAE
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The Central Bank of the UAE (CBUAE) released its 2023 Annual Report which provides an analysis of financial and
economic developments domestically, regionally and globally in addition to
detailing the CBUAE's actions, strategic developments and progress delivered
during 2023.
The report states that the UAE's real GDP growth stood at 3.6% in 2023. For 2024, the CBUAE projects real overall output
growth rebounding to 3.9%, primarily on the back of a recovery across diverse
sectors of the economy. The UAE's financial sector also recorded robust
performance in 2023, achieving 11.1% growth in total assets to over AED 4
trillion. The country's banking system also maintained appropriate
capitalisation, strong profitability, and sufficient liquidity for the year.
The CBUAE also marked significant progress against its 2023-2026
Strategy in the areas of financial stability, monetary policy, banking,
insurance and financial crime supervision, consumer protection and
digitisation. Testament to these efforts is the UAE banking system's
improvement across key bank soundness indicators. The results are based on the
CBUAE's internal comparison methodology which leverages data from IMF Financial
Soundness Indicators.
With regards to financial stability, the CBUAE actively employed a
macroprudential policy framework to safeguard financial stability, whilst
continuing to perform stress tests to assess banks' capital and liquidity
buffers against adverse scenarios.
The CBUAE also continued its work to ensure the safety and soundness of
the financial sector in 2023, carrying out 247 prudential examinations - up
from 181 in 2022. For the first time, climate-related risks formed part of the
CBUAE's work in enhancing the regulatory and supervisory framework for licensed
financial institutions (LFIs). In addition, the CBUAE's enhanced efforts in the
area of financial crime supervision contributed to the completion of the action
plan agreed with the Financial Action Task Force (FATF) and the UAE's exit from
FATF's enhanced monitoring process.
As part of its Financial Infrastructure Transformation (FIT) programme,
the CBUAE launched a series of innovative payment platforms in 2023 with the
aim of driving the
Transformation of the UAE's financial sector and strengthening its
stature as a global digital payments hub. These include the establishment of an
Instant Payments Platform, Aani, as well as the UAE's first Domestic Card
Scheme, Jaywan.
Building on its commitment towards consumer protection, the CBUAE issued
the Ombudsman Regulation in 2023. This led to the establishment of Sanadak, the
first independent financial ombudsman unit in the MENA region with a mandate to
receive and handle complaints from consumers of banking and insurance
institutions.
The CBUAE also continued to promote Emiratisation across the financial
sector, with a total of 2720 Emirati nationals joining the sector in 2023
against a target of 1875. Emiratisation in leading roles in Banks sector also reached 31% - an 8% year-on-year increase.
In keeping with its commitment to bolster sustainability, the CBUAE
launched the COP28 UAE TechSprint to promote technology innovation in scaling
sustainable finance. The initiative attracted a record 126 proposals from 31
countries. Furthermore, the CBUAE played an important role in uniting the UAE
banking sector to mobilise AED 1 trillion in sustainable finance by 2030.
The full 2023 Annual Report may be accessed click here
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