UAE banking assets rise 12.9% amid loan growth and financial relief

The UAE banking sector demonstrated significant growth and resilience through August 2026, with total banking assets increasing 12.9 percent year-on-year. According to the Central Bank of the UAE (CBUAE), total loans grew by 18.8 percent, while bank deposits rose by 13 percent.

Asset quality has improved, with the non-performing loans (NPL) ratio declining to 2.6 percent and the net NPL ratio reaching 1.2 percent. These developments follow the implementation of the Financial Institutions Resilience Package (FIRP), which has provided payment deferrals and waivers of commissions and fees on loans worth AED 15.9 billion ($4.33 billion) through the end of August.

The relief measures benefited 155,970 customers, including 148,681 retail customers receiving Dh2.3 billion in deferrals. Additionally, 849 private sector companies received Dh10.7 billion in support, and 6,441 small and medium-sized enterprises (SMEs) secured Dh2.9 billion in deferrals.