Latest news with #CentralBankoftheUAE
Arabian Post
18 hours ago
- Business
- Arabian Post
UAE Reserves Surge with Gold Holdings and Deposit Growth
The Central Bank of the UAE expanded its gold reserves by 19.3 per cent in the first quarter of 2025, adding AED 4.444 billion to bring the total to AED 27.425 billion as of 31 March, up from AED 22.981 billion at the close of 2024. The bank's latest statistical bulletin also reveals marked increases across demand, savings and time deposits, alongside robust payment-system activity. Heightened global market unpredictability and a strategic emphasis on diversifying reserve assets underpin the bank's move to bolster gold reserves, officials say. This reflects a continued shift toward safer, non‑interest-bearing assets amid sustained volatility. Deposit trends in the banking sector continued on an upward trajectory. Demand deposits reached AED 1.147 trillion by the end of March, up from AED 1.109 trillion in December, with AED 856.062 billion in dirhams and AED 291.116 billion in foreign currencies. Savings deposits rose to AED 338.788 billion from AED 317.48 billion at year-end, while time deposits touched AED 991.757 billion, including AED 614.854 billion in local currency and AED 376.9 billion abroad. ADVERTISEMENT Electronic transfers via the UAE Funds Transfer System surged to AED 5.449 trillion in Q1, comprising AED 3.331 trillion in interbank transfers and AED 2.118 trillion in customer transactions. Cheque-based payments showed significant volume: 5.615 million cheques totalling AED 351.359 billion were cleared through image-based processing, including AED 116.712 billion in March alone. Cash withdrawal and deposit activity remained vigorous. Withdrawals reached AED 63.887 billion, while deposits totalled AED 47.124 billion during the quarter. Analysts interpret these developments as a sign of deepening liquidity and enhanced confidence in the UAE's financial system. A senior economist at a regional bank commented: 'The scale of growth in both deposit categories and gold reserves reflects a deliberate strategy by the Central Bank to fortify the country's buffer against external shocks. Investors are clearly hedging against uncertainty by increasing exposure to tangible assets and maintaining high liquidity.' The economist also cautioned that global interest-rate fluctuations and geopolitical risks could influence the bank's future asset allocation decisions. The rise in gold reserves places UAE among regional central banks increasing non‑yielding assets. Analysts point to a broader trend, driven by concerns over inflation and currency volatility in key reserve currencies. A comparative report by a GCC central banking consortium notes that gold reserves across member countries grew by an average of 12 per cent in Q1, with the UAE outperforming peers. Within the banking sector, sustained deposit growth reflects resilient household and corporate savings. Strong currency‑hedged deposit figures—nearly AED 1.1 trillion in UAE dirhams—suggest that domestic confidence remains high in spite of global uncertainties. Meanwhile, foreign-currency deposits provide necessary coverage for international trade and investment. Rising transaction volumes through the UAEFTS, which processed transfers worth AED 5.449 trillion, underscore the depth of interbank activity and customer engagement. Stakeholders highlight the central bank's digital-clearing infrastructure as a key enabler in supporting large-scale financial flows with efficiency and security. Cheque transactions processed via imaging systems illustrate the continuing relevance of traditional payment instruments, even as the system adapts to technology-driven clearing processes. Meanwhile, high levels of cash withdrawals and deposits indicate ongoing demand for physical currency in everyday commerce and cash-based sectors. Central Bank officials, responding to questions from regional media, affirmed that quarterly data would continue to inform dynamic adjustments in reserve management and monetary policy. They emphasised readiness to tweak both tangible and liquid asset holdings as required to optimise financial stability and sovereign risk protection. Understanding the full impact of these developments requires monitoring global monetary shifts and upcoming fiscal announcements. Market observers will be watching for signals in the next Central Bank bulletin, particularly regarding foreign exchange reserves and gold holdings for subsequent quarters.
Al Etihad
2 days ago
- Business
- Al Etihad
Under the patronage of Mansour bin Zayed, Central Bank of UAE concludes Climate Forum in Abu Dhabi
26 June 2025 20:04 ABU DHABI (WAM) The Central Bank of the UAE (CBUAE) concluded its Climate Forum on Thursday in Abu Dhabi, held under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court, Chairman of the Board of Directors of the forum reaffirmed the importance of effective dialogue and close collaboration among key stakeholders in addressing climate-related financial risks, advancing sustainable finance and exchanging best practices to strengthen the resilience of the financial system and accelerate climate forum comes as part of the CBUAE's ongoing efforts to drive the transition towards a more sustainable financial system and strengthen its vital role in leading sustainable finance efforts, in line with the UAE's Net Zero by 2050 of the CBUAE, Khaled Mohamed Balama, opened the forum in the presence of Dr. Amna bint Abdullah Al Dahak Al Shamsi, Minister of Climate Change and Environment, Abdulaziz Al Ghurair, Chairman of the UAE Banks Federation, and James Talbot, Chair of the Monetary Policy Workstream at the Network for Greening the Financial System, alongside a group of financial leaders, policymakers, international experts in sustainable finance and climate risks, and senior officials from regulatory bodies, central banks, and local and international financial his keynote address, Khaled Mohamed Balama emphasised that the Climate Forum represents a strategic milestone in the UAE's journey of climate and financial action, especially in light of the geopolitical and economic challenges and accelerating climate change witnessed added, 'The Climate forum represented a pivotal turning point towards transitioning from a phase of dialogue and exchanging visions to a phase of practical implementation, through systematic investment in building institutional capabilities, updating policies, and developing operational processes within financial institutions. This contributes to enhancing the resilience and stability of the financial system and raising its level of preparedness in facing future risks, further solidifying the desired balance between sustainable economic growth and environmental protection.'He also stressed that the forum reflects the ambitious vision of the UAE and its keenness to consolidate its position as a leading global hub for institutional dialogue on issues of sustainable finance and responsible climate forum discussed ways to enhance the integration of climate policies in risk management and investments, and the necessity of finding effective solutions to strengthen the financial sector's resilience in facing future climate and environmental challenges. It also addressed frameworks for activating regional and international cooperation in the areas of legislation, financial policies, and adopting a proactive approach in developing sustainable Islamic finance solutions, in a step that affirms the UAE's growing position as a leading global centre in leading the dialogue on the future of sustainable forum's agenda included a number of themes in the field of sustainable finance, most notably strategies for integrating climate risks into regulatory frameworks, adaptation finance tools in emerging markets, and policies for enhancing the resilience of financial systems in the face of climate change. The forum also highlighted empowering financial institutions to adopt best global practices in analysing environmental risks and enhancing sustainability-related forum also included a number of dialogue sessions that brought together policymakers, representatives of central banks, and green finance experts to discuss ways to align monetary and financial policies with climate goals and the importance of innovation in developing green investment tools. The sessions addressed ways to build institutional capabilities and activate frameworks for regional and international cooperation in the areas of greening banking operations and sustainable Islamic finance, further enhancing the integration of roles between the public and private Amna bint Abdullah Al Dahak Al Shamsi said, "The UAE's commitment to climate action and sustainable development is a cornerstone of our national vision. This is powerfully demonstrated by our Net Zero 2050 Strategy and Green Agenda 2030, and further reinforced by our whole-of-society approach. We are actively integrating climate policies directly with financial goals, thereby driving sector-wide sustainable growth."We firmly believe that by strategically directing climate finance and investment, we can drive profound change, unlock green economic opportunities, and build a resilient financial system that ensures lasting prosperity. Recognising the urgency of our collective climate action, we commend the instrumental work of the UAE Central Bank and the NGFC in bolstering green finance infrastructure. Their efforts are integral to helping the nation achieve its climate and sustainability goals while simultaneously driving socio-economic growth."In his opening speech, Abdulaziz Al Ghurair said, 'Organising the Climate Forum reflects Central Bank of the UAE's proactive approach and firm commitment to Environmental, Social, and Governance (ESG) principles as a core driver of our growth in line with the UAE's Net-Zero 2050 strategy and Sustainable Development Goals (SDGs)."'UBF, as the sole representative and unified voice of UAE banks, remains committed to continuously enhancing our financial and banking ecosystem and facilitating innovative finance solutions towards a sustainable and inclusive future. UBF's member national banks' pledge to dedicate over Dh1 trillion in sustainable/green finance by 2030 is a testament to our efforts. Our member banks continue to lead innovative solutions in ESG financing."In his closing remarks, Assistant Governor of Monetary Policy and Financial Stability at the CBUAE, Ebrahim Al Zaabi, affirmed the forum's success in achieving its strategic objectives by providing a high-level platform for constructive dialogue and strengthening frameworks for joint cooperation among regulatory and financial entities to address climate-related added, 'The fruitful discussions witnessed by the forum contributed to enhancing the understanding of current climate challenges and exploring promising prospects for building and developing a more resilient and integrated financial system, by expanding the base of partnerships and strengthening international cooperation.' He affirmed the CBUAE's commitment to supporting the UAE's sustainable development agenda and continuing to work closely with the Network for Greening the Financial System and all local and international partners, in order to formulate effective climate policies that contribute to solidifying financial and monetary stability at both local and international levels.
Al Etihad
2 days ago
- Business
- Al Etihad
UAE's GDP to grow by 4.4% in 2025, 5.4% in 2026: Central Bank of UAE's latest forecast
26 June 2025 18:12 REDDY (ABU DHABI)The UAE's real GDP is expected to grow by 4.4% in 2025, accelerating to 5.4% in 2026, according to the Central Bank of the UAE's (CBUAE) latest Quarterly Economic Review. This growth trajectory is supported by the resilience of the non-hydrocarbon sector and a rebound in oil and gas output aligned with updated OPEC+ production CBUAE forecasts non-hydrocarbon GDP to expand steadily by 4.5% in both 2025 and 2026, underpinned by the country's strategic drive to attract foreign investment, support innovation, and advance key sectors such as manufacturing, tourism, transport, and the digital economy. On the hydrocarbon side, growth is forecast at 4.1% in 2025, followed by a sharper 8.1% expansion in 2026, reflecting anticipated increases in oil output as OPEC+ production quotas are gradually relaxed and new upstream and midstream projects take hold. This marks a significant turnaround from 2024, when oil GDP grew by just 1.0%, dragging overall GDP growth to 4.0% despite a 5.0% rise in non-oil the central bank has marginally revised down its earlier growth forecasts—by 0.3 percentage points for both years—citing softer global economic activity, lower oil prices, and increased uncertainty, the outlook remains solidly this assessment, Ralf Wiegert, Head of MENA Economics at S&P Global Market Intelligence, said, 'The UAE economy is still expected to gain momentum. We forecast real GDP growth to reach 5.4% in 2025 and 6.5% in 2026. This will be driven by the oil sector's recovery and the strength of domestic demand.'Wiegert also emphasised the UAE's capacity to weather external shocks, adding, 'Domestic demand in the UAE remains strong and is underpinning broader economic stability. The oil rebound adds a strong layer of support to the overall growth story.'On the inflation front, the CBUAE reported an average rate of 1.4% in Q1 2025, driven mainly by lower transportation costs and easing energy prices. Abu Dhabi's inflation rate was 0.5%, and Dubai's inflation rate was 3.1% for the first quarter of 2025, the CBUAE report noted. Full-year inflation is now forecast at 1.9% for both 2025 and 2026—a slight downward revision from earlier estimates. While housing costs have edged higher, rising by 3.9% year-on-year in Q1, food and beverage inflation cooled to just 0.4% amid softening global commodity prices.S&P Global Market Intelligence broadly concurs with the central bank's inflation projections, though it expects a gradual increase over time.'Our inflation outlook for 2025 matches the central bank's at 1.9%, but we anticipate a moderate acceleration to 2.5% in 2026 due to sustained domestic demand,' Wiegert noted. Despite risks tied to global trade policy uncertainty and oil price volatility, the CBUAE's report also identifies upside potential in the successful implementation of economic reforms, new trade agreements, and the growing role of artificial intelligence in enhancing productivity and competitiveness.
Gulf Today
2 days ago
- Business
- Gulf Today
CBUAE suspends onboarding of new customers in Islamic Window of bank for six months, imposes financial sanction
The Central Bank of the UAE (CBUAE) has suspended the onboarding of new customers on the Islamic Window of a bank operating in the UAE, for six months and imposed a financial sanction of Dhs 3,502,214, pursuant to Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. The sanctions result from the CBUAE's Sharia supervision examinations, which revealed the bank's non-compliance with the instructions related to Sharia' Governance of the Islamic Window and the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. The CBUAE, through its supervisory and regulatory mandates, endeavors to ensure that all banks and their staff, abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the banking sector and safeguard the UAE financial system. WAM
Arabian Post
2 days ago
- Business
- Arabian Post
UAE's Mashreq Bank Launches Office in Türkiye to Boost Capital Flow
Mashreq Bank has inaugurated a representative office in Türkiye, marking a significant stride toward enhancing financial collaboration between the Gulf and Turkish markets. This strategic move is central to Mashreq's initiative to channel risk capacity and capital flows directly to Turkish banks and corporates. Dubai's Mashreq is already a familiar correspondent to Turkish financial institutions, actively participating in syndicated loans, trade finance, payments, treasury services and capital markets. Now, with its local presence in Istanbul, the bank aims to deepen engagement, offering on-the-ground support to clients and bolstering access to global capital markets. Group Chief Executive Officer Ahmed Abdelaal underscored the office opening as a step into 'Türkiye's strategic location, dynamic economy, and strong trade and investment ties with the UAE'. He emphasised that the expansion was aligned with Mashreq's vision of building 'a truly global banking network that connects key economic corridors.' ADVERTISEMENT Mashreq has already established itself as a leading bookrunner for Turkish borrowers, playing a key role in structuring bond issuances for prominent Turkish banks. This activity highlights the bank's significance in supporting capital raising on behalf of Turkish clients. Operating across 14 countries and regulated by the Central Bank of the UAE, Mashreq has demonstrated robust international growth. Its footprint spans the Middle East, South Asia, and key financial centres including New York, London and Hong Kong. The new Türkiye office is part of this wider expansion, underscoring a concerted push toward strengthening global capital market presence. The financial landscape in Türkiye has evolved in the past decade, with local banks seeking international partnerships to diversify funding sources. Inflationary pressures, high interest rates and currency volatility have made access to foreign capital especially valuable. By providing a direct conduit to Gulf and global investors, Mashreq's İstanbul office could become a gateway for Turkish entities to tap into new liquidity pools. Analysts point out that Gulf-based banks are particularly well-positioned to support emerging markets such as Türkiye thanks to their large capital buffers, risk appetite and regional proximity. 'Regional banks play a pivotal role in bridging the funding gap for emerging economies,' according to Mohammed Al Hashmi, a senior analyst at Gulf Financial Insights. He added that embedding operations within local financial ecosystems helps to facilitate quicker decision-making and improve transaction efficiency. Mashreq's strategy reflects a broader trend among UAE banks to transfer capital into regional markets experiencing structural growth and occasional market stress. Earlier this year, Mashreq was lauded as the Middle East's fastest-growing banking brand and received recognition as the Best Digital Bank five years running, achievements which underscore its strong balance sheet and technological edge. ADVERTISEMENT Since its establishment, the Istanbul office has already been involved in several mandates. Mashreq served as a lead manager for corporate bond issuances and leveraged its syndication capabilities to support Turkish banks' funding and expansion programmes. Further mandates are reportedly in the pipeline, including debt structuring and trade-finance support for mid-market Turkish corporates seeking international reach. The timing is opportune, with global investors eyeing Turkish assets amid a shift in interest rate policies worldwide. Türkiye's policy rate remains elevated, while comparative opportunities in fixed income and FX-linked instruments continue to attract foreign interest, although accompanied by elevated macroeconomic risks. Mashreq's capacity to structure sukuk and conventional bonds, combined with its regional relationships, offers an appealing solution. The bank's international banking wing has steadily increased its footprint. Over the years, it has expanded correspondent banking relationships in jurisdictions such as Oman, Bahrain, Qatar, Kuwait and India, while diversifying its services to include sustainable and digital financial products. Integration of ESG and digital banking has been a focus, with the bank earning accolades including the Euromoney Trade Finance Award and recognition for its internet and digital banking capabilities. For Turkish corporates, more than ever, the need for cross-border liquidity, international financing platforms and diversified risk capacity is pronounced. Mashreq's local team is expected to fast-track access to structured debt solutions, Islamic finance products and syndication mechanisms tailored to both corporate and financial institutional clients. From a geopolitical standpoint, the expansion reflects the deepening economic linkages between Türkiye and the UAE. Bilateral trade has grown consistently in areas such as energy, infrastructure, railways and tourism. The establishment of the office provides a financial channel to support these sectors, potentially fast-tracking infrastructure project financing, private equity deals and structured transactions. Concerns persist regarding Türkiye's macroeconomic stability, with inflation still above the central bank's comfort zone and currency fluctuations posing challenges. Nevertheless, institutional investors express confidence in strategies that anchor on diversified funding and international partnerships. Mashreq's capital buffer and experience in risk transfer could help Turkish entities manage idiosyncratic volatility. The representative office comes at a time when regional banks are competing to become preferred partners for emerging markets. Mashreq hopes its established digital platforms, seasoned capital markets team and deep experience with Islamic finance will distinguish it among competitors. In Türkiye's competitive banking sector, this onshore presence could tilt selection in its favour for mandates spanning debt, treasury, trade and sustainability-linked products. As the İstanbul office scales operations, the bank intends to recruit local talent, enhance its underwriting capabilities and explore collaborations with Turkish banks in areas such as fintech, cash management solutions and ESG financing.
