UAE Central Bank Reports Strong Banking and Insurance Sector Growth

The Central Bank of the UAE's latest economic review pointed to continued strength in the country's financial sector, underpinning a resilient non-oil economy. Total banking-sector assets rose about 17.7% year on year to roughly AED 5.56 trillion by the end of the first quarter of 2026, while the loan portfolio expanded around 20.3% and deposits grew about 17.4%. Banks maintained strong capital positions, with a capital adequacy ratio near 16.8% and improved asset quality reflected in a low net non-performing loan ratio of about 1.5%. The insurance sector also continued its growth path, with gross written premiums rising roughly 15% and the number of policies increasing, signalling deepening insurance penetration. The central bank has projected the wider economy to grow around 5.6% in 2026, driven primarily by non-hydrocarbon sectors including financial and insurance services, manufacturing and construction, supported by economic diversification and expanding trade agreements. The figures underscore the UAE's positioning as a regional financial hub, though officials have flagged that regional geopolitical tensions could weigh on credit growth and asset quality in the periods ahead.