UAE Central Bank Reaffirms Financial Sector Stability Amid Regional Developments

Operations in the UAE’s financial domain remain stable despite geopolitical tensions in the MENA region, with HE Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), crediting strong balance sheets and robust risk management frameworks for its continued stability. 

Financial markets in the UAE experienced a temporary disruption after hostilities in the Gulf escalated on February 28, 2026. Trading markets in the UAE, including the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX), were suspended for two days before reopening on March 4th. Although several stocks fell during early trading, the UAE’s financial authorities say that the country remains well-positioned to navigate the evolving situation. 

Indeed, Balama said in a statement that financial institutions across the country continue to operate without disruption and maintain strong capital and liquidity positions. According to Balama, this resilience can be attributed to the institutional framework built over more than five decades, which includes strong governance, diversification across financial services, and proactive regulatory oversight.

“This enduring legacy reflects the strength of the foundations upon which the UAE’s financial and banking system has been built, grounded in sound governance, institutional discipline, financial sector diversification, proactive risk management, and a high level of preparedness to respond effectively to regional developments,” Balama said, while adding that the country’s financial infrastructure continues to function normally. “I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability. These systems are supported by advanced operational and technological frameworks that ensure the seamless, secure, and uninterrupted functioning of banking and financial services.” 

According to the Central Bank, banks and financial institutions operating in the UAE have implemented advanced systems for risk assessment and business continuity aligned with global best practices, helping ensure services remain uninterrupted during periods of volatility. “In line with our supervisory and regulatory mandate, we continuously monitor key indicators of financial stability and liquidity across the banking and financial sector,” Balama shared. “We also conduct regular assessments and stress-testing exercises to ensure the continued soundness and resilience of the financial system.” 

Supporting this outlook, the Central Bank noted that the sector’s capital adequacy ratio stands at 17 percent, while the liquidity coverage ratio exceeds 146.6 percent, both well above international regulatory requirements. The UAE’s banking and financial sector now holds more than AED5.42 trillion (US$1.48 trillion) in total assets, indicators that officials say demonstrate the system’s capacity to support economic activity and meet financial obligations even during periods of uncertainty. 

Additionally, several companies listed on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) reassured investors that their operations continue as usual. According to a report by Zawya, alternative investment company Investcorp Capital PLC (ICAP), AI and data analytics firm Presight AI Holding, Dubai Aerospace Enterprise, national insurance company Al Wathba National Insurance Company, and Abu Dhabi-based investing conglomerate Hily Holding, representing sectors including finance, technology, aviation, and logistics, said that they are closely monitoring regional developments while maintaining full operational capacity and safeguarding employees and assets. 

While executives acknowledged that geopolitical tensions could lead to short-term market fluctuations, they emphasized that diversified portfolios and stable operating environments support business continuity. For instance, Investcorp, in a statement, said: “While heightened geopolitical tensions may create short-term volatility, ICAP’s diversified global portfolio and disciplined investment approach position us to navigate uncertainty with resilience.”