DUBAI — Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of United Arab Bank (UAB), has affirmed the lender’s strong financial standing and the broader resilience of the UAE banking sector. In a comprehensive review of the industry, the Chairman highlighted that prudent regulation, ample liquidity, and a diversified economic base continue to position UAE financial institutions as global leaders in stability.
Institutional Resilience and Regulatory Support
The UAE financial system’s stability is anchored by the Central Bank of the UAE (CBUAE) and its Financial Institutions Resilience Package (FIRP). This framework, supported by foreign exchange reserves exceeding Dh1 trillion, ensures that credit flows remain consistent even during periods of global volatility.
“The UAE banking sector stands as one of the most resilient and well-regulated globally,” Sheikh Mohammed noted, citing the nation’s high investment-grade sovereign credit ratings as a testament to its fundamental economic strength.
UAB: A Transformation in Asset Quality and Capital
United Arab Bank has undergone a significant financial turnaround, transitioning to a position of clear operational strength. Key performance indicators for 2025 include:
- Capital Adequacy: A robust ratio of 20.4%, significantly exceeding regulatory requirements.
- Asset Quality: A sharp reduction in the Non-Performing Loan (NPL) ratio, falling from 8.2% at the end of 2022 to less than 3% in 2025.
- Profitability: Net profit rose 45% year-on-year to reach Dh438 million, with a return on equity of 16%.
- Liquidity: Customer deposits grew by 31% to Dh17.8 billion, bringing total assets to Dh27 billion.
The bank’s capital base was further fortified by a Dh1.03 billion rights issue and a Dh1 billion senior unsecured term loan, reflecting strong investor confidence.
Digital Transformation and Cybersecurity
UAB has designated 2025 as a pivotal year for its digital evolution. The bank launched a revamped mobile banking platform integrated with AI-powered personal banking tools and strategic fintech partnerships.
In tandem with these digital offerings, the board has prioritized cybersecurity as a core pillar of risk management. The bank recently deployed advanced machine learning tools for real-time fraud detection and transaction monitoring, ensuring data integrity across all compliance workflows.
Supporting the National Economy
Aligned with the UAE's national vision, UAB remains a key facilitator for Small and Medium Enterprises (SMEs) and mid-market corporates. By maintaining high CET1 ratios (16.4%), the bank ensures it can continue lending across economic cycles.
UAB also continues to support national priorities through:
- Financial Integration: Participation in AANI (instant payments), Jaywan cards, and the Buna cross-border payment system.
- Emiratisation: The "Tomouh" program, designed to develop and empower UAE national talent within the financial sector.
- Specialized Lending: Providing housing finance for citizens and tailored supply chain solutions for local businesses.
"Our ambition is clear: to be a strong, trusted, and forward-looking bank, driven by discipline, enabled by technology, and defined by the strength of our client relationships," concluded Sheikh Mohammed.
