In 2024, the UAE maintained its regional leadership in the financial sector and vital initiatives were introduced setting the stage for a brighter future ahead, said the Central Bank of the UAE (CBUAE) in a statement last week.
The CBUAE said that the insurance sector grew significantly in 2024 with GWP reaching approximately AED64.5bn ($17.6bn), compared to AED53.3bn in the preceding year, recording an impressive growth rate of 21%.
The statement added that the positive outcome of the past year sets the stage for a bright future for the UAE's financial sector and underscores the CBUAE's pivotal role in fostering monetary and financial stability, managing reserves, developing secure financial infrastructure through cutting-edge digital innovation, stimulating sustainable economic growth, and strengthening the UAE's global competitiveness and leadership.
The Bank said, “The UAE's financial, banking, and insurance sectors experienced substantial growth in the past year. The UAE banking sector, the largest in the Middle East, reached total assets of AED4.457tn at the end of November 2024, compared to AED4.075tn in 2023. The net non-performing loan ratio decreased to 2.1% in 2024 from 2.4% in 2023, highlighting improved asset quality in the banking sector".
Titled “CBUAE’s 2024 Achievements Drive Momentum Towards a Bright Future for the Financial Sector”, the statement highlighted the Bank's major achievements in the past year, among which:
- Record financial results for the Central Bank, with total assets reaching AED896bn
- UAE banking sector is the largest in the Middle East, boasting total assets of AED4.457tn
- Launch of the world's first Open Finance regulation
- Issuance of the Middle East's first regulation for licensing and overseeing stablecoins
- 152.85% Emiratisation rate achieved, exceeding the 2024 target
- Five FinTech regulations issued to promote digital transformation, attracting 260 global FinTech firms and opening new markets to 180m new customers.
On legislative and regulatory developments, the CBUAE said that it has issued several legislative and regulatory frameworks to enhance regulation and supervision of licensed financial institutions and improve the performance of the financial, banking, and insurance sectors, strengthening the UAE's leading regional and global position.
The bank noted that real GDP growth for the country is estimated at 4%, with nominal GDP projected to reach approximately AED2tn in 2024, compared to AED1.9tn in 2023.