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The United Arab Emirates’ (UAE) banking sector and financial system continues to operate without disruption despite the Iran war, the country’s central bank governor said Thursday.
"The UAE’s banking and financial sector continues to demonstrate the highest levels of resilience and stability," Central Bank of the United Arab Emirates Governor Khaled Mohamed Balama said, adding that institutions across the country are delivering services to customers and the public "efficiently and without disruption."
The statement came as financial markets faced pressure after Iran launched missile and drone attacks in response to U.S. and Israeli strikes, raising concerns across Gulf economies.
Amid tensions, trading sessions on the Dubai Financial Market were halted from Mar. 2 to Mar. 3. After trading resumed on Mar. 4, the benchmark index fell more than 7.7% compared with levels before the escalation.
Balama said the UAE’s financial system has been built over more than five decades, allowing the country to manage geopolitical shocks while maintaining operational stability.
He added that the central bank’s regulatory framework is based on governance standards, diversified financial activity and risk management practices designed to protect the system during periods of volatility.
Key financial indicators in the banking sector remain strong. The capital adequacy ratio stands at 17%, while the liquidity coverage ratio exceeds 146.6%, both above international regulatory benchmarks, he noted.
Balama also said the country’s payment systems and broader financial infrastructure continue to operate normally. "I also reaffirm that the UAE’s banking systems, payment systems, and national financial infrastructure continue to operate with full efficiency and stability," he said.
He said authorities maintain a range of prudential and monetary policy tools that can be deployed when necessary to safeguard financial stability and maintain confidence in the banking system, which holds assets of AED 5.42 trillion ($1.47 trillion).
The UAE is one of the leading economies in the Gulf, with a gross domestic product (GDP) of $552.32 billion in 2024, according to the latest World Bank data, while Dubai remains a key banking and financial hub in the region.
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