UAE Financial Sector Resilience Amid Gulf Crisis

In the wake of the U.S.-Iran conflict, UAE's central bank governor reassures the nation of its financial sector's robustness. Despite Iranian missile strikes sparking uncertainties, the UAE banking system remains stable with advanced risk management frameworks and a strong capital adequacy ratio of 17%.

The United Arab Emirates' central bank governor on Thursday sought to reassure citizens and investors of the nation's financial fortitude amidst escalating tensions in the Gulf region. With Iranian missile attacks causing concerns, the UAE's banking sector has been described as stable and resilient, boasting a robust capital adequacy ratio and liquidity coverage.

Central bank governor Khaled Mohamed Balama emphasized the sector's strength, citing a capital adequacy ratio of 17% and a liquidity coverage ratio exceeding 146.6%. The total assets of UAE's banking and financial sector have surpassed 5.42 trillion dirhams, indicating a sound financial foundation.

Despite regional uncertainties, banks and financial institutions maintain normal operations, backed by advanced risk management frameworks in line with international standards. As UAE stock markets experience early trade declines, the central bank remains vigilant, ensuring the continuity and stability of national financial services.

(With inputs from agencies.)