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2 clusters · 9 sources · 1 days · First seen · Last updated

UAE banking sector growth and monetary policy

Overview

The UAE banking sector has experienced significant growth and structural shifts through late 2026. By August 2026, total banking assets rose 12.9 percent year-on-year, supported by an 18.8 percent increase in total loans and a 13 percent rise in deposits. Asset quality improved during this period, with the non-performing loans ratio declining to 2.6 percent. This stability followed the implementation of the Financial Institutions Resilience Package (FIRP), which provided payment deferrals and fee waivers on loans totaling AED 15.9 billion ($4.33 billion) to retail customers, private companies, and SMEs.

Following this period of credit expansion, the Central Bank of the UAE (CBUAE) raised its Base Rate by 25 basis points to 3.90 percent, effective September 17, 2026. This adjustment was intended to align with the US Federal Reserve’s monetary policy due to the dirham’s peg to the US dollar. Concurrent with this rate hike, bank credit continued to expand, growing by Dh72.4 billion ($19.7 billion) in August to reach a total of Dh2.87 trillion, driven largely by personal borrowing.

Entities

Central Bank of the UAE · Khaled Mohamed Balama · United Arab Emirates · United States · Federal Reserve

Timeline

  1. [BUSINESS] 9 sources
    UAE Central Bank raises Base Rate to 3.90% amid credit growth

    The UAE Central Bank raised its Base Rate to 3.90% following a US Fed hike, while August data shows UAE bank lending grew by Dh72.4 billion to reach Dh2.87 trillion.

  2. [BUSINESS] 2 sources
    UAE banking assets rise 12.9% amid loan growth and financial relief

    UAE banking assets rose 12.9% through August 2026, supported by strong loan growth and AED 15.9 billion in financial relief provided to individuals and businesses via the FIRP program.

Sources

alborsaanews.com · alwatan.ae · bazaartimes.com · dubaiweek.ae · economymiddleeast.com · emirates247.com · gulfnews.com · lovinmalta.com · tokenpost.com