UAE
Banking sector profile — Middle East & North Africa
Data as of October 2026 • TGB Intelligence Unit
Policy rate as of 7 October 2026: 3.90% (source: Central Bank of the UAE)
Banking sector at a glance
Structure and performance
The UAE has the largest banking system in the GCC by assets: banks held AED5.59tn (US$1.52tn) at end-June 2026, about 266% of 2025 GDP. The CBUAE register lists 63 licensed banks, 25 national and 38 foreign, 12 of the latter with wholesale licences, but the market is led by Abu Dhabi and Dubai groups. First Abu Dhabi Bank, Emirates NBD and Abu Dhabi Commercial Bank each reported consolidated assets above US$200bn at end-2025. Islamic banking is anchored by Dubai Islamic Bank and Abu Dhabi Islamic Bank.
Banks are deposit-funded and hold large external assets. Resident deposits included in broad money were AED2.71tn in June 2026, and the sector's net foreign assets rose to AED908.5bn from AED750.0bn at end-2025, with claims on non-residents of AED2.25tn. Domestic lending is weighted to the private sector, with claims of AED1.58tn, while claims on public non-financial corporations were AED393.1bn. Residential real estate loans were 5.0% of gross loans and commercial real estate loans 11.8% in the first quarter of 2026.
Capital, liquidity and profitability are strong. In the first quarter of 2026 the total capital ratio was 16.8% and CET1 14.3%, the liquidity coverage ratio 138% and the NSFR 110%. The NPL ratio was 2.8%, with provisions equal to 52% of NPLs. Return on equity was 19.4% and return on assets 2.1%. Large banks reported higher first-half 2026 earnings: Emirates NBD's pre-tax profit rose 5% to AED16.2bn and ADCB's 28% to AED7.61bn.
The principal risk in 2026 has been the regional conflict. In March 2026 the CBUAE approved a resilience package, citing exceptional global and regional circumstances, covering reserve balances, term liquidity, liquidity ratios, capital buffers and loan classification. Other exposures include real estate, government-related entities and sanctions compliance, highlighted in August 2026 when the US Treasury's FinCEN proposed a rule that would cut Banque Misr's UAE branches off from US correspondent banking, alleging they processed funds for companies potentially linked to Iranian shadow banking networks.
Structural trends
The shifts shaping banking in UAE.
Banking assets rose 5.0% in the first half of 2026 to AED5.59tn in June, despite the regional conflict.
Banks' net foreign assets increased to AED908.5bn in June 2026 from AED750.0bn at end-2025, strengthening external liquidity buffers.
A 0.5% countercyclical buffer on UAE private-sector exposures applied from 1 January 2026, before capital buffers were temporarily suspended under the CBUAE's March 2026 resilience package.
UAE banks continue to expand abroad: Emirates NBD Egypt agreed in August 2026 to buy HSBC Egypt's retail business, with completion targeted for the second half of 2027.
Leading institutions
Largest banks in UAE by total assets.
| # | Bank | Total assets (US$) | Type |
|---|---|---|---|
| 1 | First Abu Dhabi Bank | US$382.3bn | Universal |
| 2 | Emirates NBD | US$317.1bn | Universal |
| 3 | Abu Dhabi Commercial Bank | US$210.8bn | Commercial |
| 4 | Dubai Islamic Bank | US$113.3bn | Islamic |
| 5 | Mashreq | US$91.1bn | Commercial |
| 6 | Abu Dhabi Islamic Bank | US$76.5bn | Islamic |
| 7 | HSBC Bank Middle EastSubsidiary of HSBC | US$64.3bn | Commercial |
| 8 | Commercial Bank of Dubai | US$43.7bn | Commercial |
Largest banks in UAE by total assets, FY2025 audited accounts. Domestic groups as in the TGB Bank Rankings; other domestic banks from their own audited accounts; subsidiaries of foreign groups shown with their own accounts and marked. Not a ranking table. Converted at official central-bank rates for each fiscal year-end.
Supervision and capital rules
The CBUAE licenses and supervises onshore banks, finance companies, exchange houses and payment providers; banks in the DIFC and ADGM are supervised by the DFSA and FSRA respectively. Basel III is implemented under standardised approaches: the minimum total capital ratio is 10.5% before buffers, plus a 2.5% capital conservation buffer and D-SIB surcharges, giving Dubai Islamic Bank a 13.5% requirement at end-2025. A 0.5% countercyclical buffer on domestic private-sector exposures took effect on 1 January 2026. In March 2026 the CBUAE's resilience package gave banks access to up to 30% of reserve requirements, AED and US dollar term liquidity, temporary relief on LCR and NSFR, suspension of the conservation and countercyclical buffers, and flexibility on loan classification for affected borrowers.
What changed in 2026
- March 2026: The CBUAE Board approved a resilience package giving banks access to reserve balances of up to 30% of the cash reserve requirement, providing AED and US dollar term liquidity and temporarily releasing capital buffers.
- August 2026: Emirates NBD Egypt agreed to acquire HSBC Bank Egypt's retail banking business, subject to regulatory approvals, with completion expected in the second half of 2027.
- September 2026: The CBUAE raised the Base Rate by 25bp to 3.90%, effective 17 September, following the US Federal Reserve's rate increase.
- September 2026: National Bank of Egypt received CBUAE preliminary approval to acquire Banque Misr's UAE branches, after FinCEN proposed in August to cut those branches off from US correspondent banking.
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