CBUAE: A Future-ready Central Bank Set to Drive Digital Transformation
The Central Bank of the UAE's golden jubilee marks a significant milestone in its journey towards becoming a future-ready institution. Over the past five decades, the bank has evolved alongside the dynamic financial landscape by laying a solid foundation of banking sector, championing innovations in digital transformation and Islamic finance to meet the modern economic needs of its citizens.
Embracing digital transformation, the central bank has positioned itself as a future-ready institution, driving the UAE's vision to become a global financial hub. It not only takes appropriate steps to ensure competitiveness and transparency, but also promote Islamic finance in line with the UAE's sustainable economic agenda.
Khaled Mohamed Balama, Governor, Central Bank of the UAE (CBUAE), in annual report of 2024 said the central bank continued its journey of excellence and leadership last year and it was reflected in the achievement of exceptional milestones such as the issuance of legislations and regulations to enhance regulatory and supervisory framework; guidance to ensure compliance, improve the governance of licensed financial institutions and efficiently manage risks.
'We are proud to work on the launch of the 'Open Finance Platform', which will be the first platform of its kind globally and distinguished by unique features that take into account the interests of consumers and ensure enhanced customer experiences,' the Governor said.
'We also continue to develop our 'Supervisory Technology Platform', which aims to enhance the efficiency and effectiveness of supervisory operations by automating certain activities and providing access to more insightful regulatory data,' he added.
In addition, in line with the vision and directives of the wise leadership on the future of government services and its transformation into a global model, the CBUAE worked to achieve the objectives of the nation-wide ' Zero Government Bureaucracy' programme through improving the quality of services in the financial sector.
Under the Financial Infrastructure Transformation (FIT) programme, with an 85 per cent completion rate by 2024, the CBUAE introduced groundbreaking initiatives like the Digital Dirham and Central Bank Digital Currency (CBDC), showcased during the anniversary via a cross-border payment on the mBridge platform. The 'Aani' instant payment platform and 'Open Finance' further enhance seamless, secure transactions, fostering financial inclusion in the country.
As part of its digital transformation strategy, the central bank has successfully integrated advanced technologies such as blockchain, artificial intelligence, cloud technologies and digital currencies, enhancing operational efficiency, transparency, and accessibility. This proactive approach ensures that financial services are readily available to all segments of society, promoting financial inclusion and literacy.
Pioneer in Islamic Finance
The central bank has also been a pioneer in Islamic finance, aligning its banking practices with ethical and Shariah-compliant principles. This commitment has not only diversified the financial sector but also attracted investments from local and international markets, fostering growth and stability.
The UAE Islamic banks' assets have crossed the Dh1 trillion mark in 2024, which shows success of the CBUAE policy initiatives as well as confidence of global investors on its Shariah-compliance banking. The share of Islamic banks in the total banking assets was 24 per cent as of end-2024, according to the global rating agency Moody's Ratings.
'Currently, the banks in the UAE operate in a stable environment supported by diversification efforts and structural reforms which will continue to promote growth in the non-oil economy,' said Moody's analysts.
On May 6, the UAE announced plans to significantly increase the assets of Islamic banks in the federation and value of locally listed sukuk by 2031. Specifically, the government aims to increase the assets of Islamic banks to Dh256 trillion ($697 billion) from Dh986 billion ($268 billion), the total amount of listed local Islamic sukuk to more than Dh660 billion ($180 billion) and the total amount of international sukuk to Dh395 billion ($108 billion). In 2024, $12.7 billion of sukuk was issued in the UAE, of which the UAE banks issued $4 billion, according to Moody's.
'The projected increase in Islamic banking assets will cement the UAE's position as the third-largest contributor to the Islamic finance market,' it said.
Analysts and financial sector experts attribute the success of the UAE's conventional and Islamic banks to central bank and said it is only possible due to solid foundation laid down by the CBUAE. Referring to latest data by Kamco Invest, they said the UAE-listed banks have retained their supremacy in the Gulf region as they once again topped in GCC with the highest return on equity at the end of January-March 2025 quarter at 16.6 per cent.
'The UAE banks once again ranked first in the GCC in terms of Net Interest Margins (NIMs) that reached 3.34 per cent in first quarter of 2025 as compared to 3.39 per cent during the fourth quarter of 2024. The UAE-listed banks showed the biggest absolute growth in net profits with an increase of $639.6 million or 11.8 per cent during the quarter,' Kamco Invest, a financial consultancy, said in its first-quarter report.
Looking ahead, the central bank aims to continue its leadership role in shaping a robust financial ecosystem, leveraging digital innovation and Islamic finance to navigate the challenges of the global economy. As the bank celebrates its golden anniversary, the institution stands poised to embrace new opportunities, ensuring sustainable economic development for future generations.
In January, the Central Bank of the United Arab Emirates (CBUAE) has announced the issuance of silver coins to mark the bank's golden jubilee. The CBUAE's 50th anniversary silver coin embodies its achievements in developing the banking and financial sector over the past decades.
The CBUAE has issued 3,000 of these commemorative coins, each weighing 60 grammes. The obverse features the image of The President His Highness Sheikh Mohamed bin Zayed Al Nahyan surrounded by his name in Arabic and the phrase 'President of the United Arab Emirates'. The coin's reverse features an illustration of the CBUAE building, along with the phrase '50 Years of the Central Bank of the UAE' on the upper and lower edges in Arabic and English, the years 1973-2023, and the nominal value of Dh50.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
24 minutes ago
- The National
Iranian Foreign Minister in Beirut to 'open new chapter' with Lebanon
Iranian Foreign Minister Abbas Araghchi is in Beirut to meet top Lebanese officials andhopes 'to open a new chapter in relations' with Lebanon as it begins the process of disarming non-state actors and strengthening its national army. The visit, part of Mr Araghchi's tour of the region, comes amid calls for Tehran's strongest proxy group Hezbollah to disarm in Lebanon - an indication of Iran's uncertain regional footing. Mr Araghchi met Lebanese President Joseph Aoun, Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri. The Iranian minister's first meeting was with Lebanese Foreign Minister Youssef Rajji, who is perhaps the strongest critic of Hezbollah in the new Lebanese government and was nominated for his position by the Lebanese Forces – parliament's largest party and an opponent of the Iran-backed group. "They had an absolutely frank meeting," according to a Foreign Ministry source who did not wish to be identified. "They discussed Hezbollah weapons, the negotiations between Iran and the US, rebuilding, south Lebanon, and the issue of respecting Lebanon's sovereignty," the source added. The Iranian FM was receptive to Mr Rajji's concerns and "listened very well." The Lebanese Foreign Minister's office said Mr Rajji emphasised the importance of securing support for Lebanon's reconstruction and economic recovery "exclusively through the Lebanese government and official institutions." The Iranian Foreign Minister said Iranian companies were ready to help with reconstruction efforts if the Lebanese government requested it. Iran, through Hezbollah, has donated money to cover a year's rent and loss of possessions for those who lost their homes during the war with Israel. A source close to Hezbollah said the visit was focused solely on Iran-Lebanon relations. They said Mr Araghchi's visit had nothing to do with negotiations over Iran's nuclear programme. "Iran's role in reconstruction hasn't changed; from the moment the ceasefire took effect, Tehran expressed to the Lebanese government its readiness to actively contribute to whatever Lebanon needs," the source said. "Iran's relationship with Hezbollah is not up for question or debate. It is a historical bond and is treated as such. It has always stood on the side of Lebanon's strength and resilience," they added. On the nuclear issue, Mr Araghchi said a new US proposal submitted via Oman threw up "many ambiguities and questions". Throughout the day, Lebanese officials and the Iranian Foreign Minister repeatedly stressed a desire for a relationship based on mutual respect and non-interference in each other's relations. Lebanon's Foreign Ministry summoned Iran's ambassador to Beirut in April over suggestions that plans to disarm Hezbollah were a "conspiracy". Lebanon faces reconstruction and recovery needs of more than $11 billion, according to a World Bank report published earlier this year. But who will foot that bill remains unclear, with the country bankrupt and the international community weary. Mr Aragchi had earlier been received on arrival on Tuesday by a representative of Mr Berri and two Hezbollah MPs. The Iranian minister will also probably meet officials from Hezbollah, the Lebanese armed group and political party. The whereabouts of its new leader Naim Qassem, who regularly gives televised speeches from an undisclosed location, are unclear. Mr Araghchi last visited Beirut in February to attend the funeral of Hassan Nasrallah, the long-time Hezbollah leader who was assassinated last year in an Israeli bombing on the Lebanese capital. Iranian support had been instrumental in Hezbollah turning into the region's most powerful non-state armed group. But its war with Israel last year has seen Hezbollah's power significantly weakened, although it still remains a critical Lebanese actor. Along with the killing of Mr Nasrallah, almost all of Hezbollah's senior leadership has been wiped out as well as its largest missiles. Lebanon is under pressure from many in the international community, as well as some inside the country, to disarm Hezbollah. President Aoun has said he wants all arms under the control of the state as soon as possible, but insists this must be done through mediation and not force. Mr Araghchi is travelling from Cairo, where he had said Iran is 'ready to provide assurances' that its nuclear programme is peaceful, as Tehran and Washington seek to reach a deal on the issue.
Al Etihad
2 hours ago
- Al Etihad
UAE companies highly confident about trade prospects despite global disruption: Survey
4 June 2025 00:23 MAYS IBRAHIM (ABU DHABI)Companies in the UAE are among the most confident globally about their trade prospects despite ongoing geopolitical and supply chain turbulence, according to HSBC's 2025 Global Trade Pulse report – which surveyed more than 5,700 international firms across 13 countries – found that 94% of UAE-based businesses believe their operations will benefit from the shift in trade dynamics in the long surpasses the global average of 89%, putting the UAE just behind India (96%) in terms of optimism, and ahead of the US (93%).This sentiment comes amid a wider reshuffle in global trade patterns, as many companies grapple with increased costs and revenue pressures due to tariffs and supply chain UAE's positive outlook contrasts with a growing sense of caution in Western markets. For example, 51% of US firms surveyed expect supply chain disruptions to reduce their revenue by 25% or more. 'As trade policies continue to fluctuate, businesses are compelled to rethink their long-term strategies. The current landscape demands agility and foresight, with companies prioritising domestic markets and exploring new regions to mitigate risks,' the report stated.'These strategic shifts are crucial to maintaining competitiveness and ensuring business continuity in an unpredictable global economy.'The HSBC survey highlights a global trend of 'reshoring' and 'nearshoring', with 83% of companies planning to bring production closer to their customer bases. Companies in the US have been the most active in reshoring to date (44%), while companies in China are the most likely to be planning similar steps in the future (48%).'In parallel with these shifts in production strategy, the majority of businesses globally (nearly 90%) are also planning to diversify their supplier base – expanding across multiple regions to further reduce their exposure to tariffs and ongoing trade uncertainty,' the report said. While the financial impact of ongoing trade disruption is expected to be substantial and long-lasting, the HSBC survey highlights strong signs of resilience and of corporate all surveyed markets, 77% of companies say the uncertainty has prompted them to evolve and seek new is emerging as a core response strategy, according to the report. Nearly 9 in 10 businesses globally report they have already invested in or are planning to invest in tools to enhance supply chain visibility, adopt automation in production and logistics, or improve their use of data analytics. The same proportion of respondents are expanding into new markets, developing new products, adopting technology, or adjusting cost structures to respond to shifting trade dynamics. Nearly 60% of all respondents have already adopted a new technology or digital platform, while 56% improved internal efficiency or altered their cost base and 51% have developed new products or services.
Arabian Business
3 hours ago
- Arabian Business
Air taxis in Saudi Arabia: Abdul Latif Jameel and Joby Aviation sign $1bn future transport deal
A business group in Saudi Arabia will partner with a futuristic US aviation firm on a $1bn deal to bring flying taxis to the Kingdom. The groundbreaking electric aircraft partnership will see Abdul Latif Jameel team up with Joby Aviation to explore a distribution agreement for electric vertical take-off and landing (eVTOL) aircraft. The potential deal, valued at approximately $1bn, could deliver up to 200 aircraft in the coming years, marking a pivotal step in Saudi Arabia's clean transportation ambitions. Flying taxis in Saudi Arabia The announcement builds on the deepening economic ties between the United States and Saudi Arabia, with both nations investing heavily in next-generation, sustainable infrastructure. Joby Aviation, known for its piloted, all-electric aircraft designed to carry four passengers at speeds of up to 200 mph, represents the forefront of urban air mobility. With zero operating emissions and significantly reduced noise levels, Joby's aircraft are poised to redefine short-distance travel. JoeBen Bevirt, Founder and CEO of Joby Aviation, said: 'This collaboration is about bringing America's leadership in electric air mobility to the world. Together with Abdul Latif Jameel, we're not just imagining a cleaner, safer, more efficient future—we're building it. And there is no better partner to help unlock the extraordinary opportunity for air travel in the region.' Hassan Jameel, Vice Chairman, Saudi Arabia, Abdul Latif Jameel, said: 'Saudi Arabia is transitioning toward a new era of mobility – one that is on-demand, shared, connected, and sustainable. eVTOL is an exciting and important component of this. 'We are looking forward to collaborating with Joby to support the transformation of the Kingdom's mobility sector. This collaboration also comes as Abdul Latif Jameel Motors marks 70 years of distributing Toyota in Saudi Arabia — a strategic investor in Joby.' Joby's collaboration with Abdul Latif Jameel will initially focus on Saudi Arabia, where Abdul Latif Jameel has an extensive presence, network and deep operational experience. The two businesses will work together to explore distribution and sales collaborations, the launch of local air taxi services, including the establishment of aftermarket services such as MRO (Maintenance, Repair, and Overhaul), and pilot training. Joby's piloted, all-electric aircraft is designed to carry four passengers at speeds of up to 200mph, offering high-speed mobility with a fraction of the noise produced by helicopters and zero operating emissions. Joby Aviation aims to launch its first commercial passenger flights in Dubai by 2026, with expansion into Saudi Arabia envisioned soon after. The deal also reflects Abdul Latif Jameel's broader investment strategy in future mobility. The Jameel family previously invested in Joby's Series C funding round, led by Toyota Motor Corporation in 2020.
