UAB well-positioned as UAE banking sector shows resilience, says Chairman

Dubai: The UAE’s banking sector continues to demonstrate strong resilience and global competitiveness, underpinned by robust regulation, ample liquidity and a diversified economic base, according to Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of United Arab Bank (UAB).

In an interview with Gulf News, Sheikh Mohammed said the sector’s stability is supported by prudent oversight from the Central Bank of the UAE and forward-looking initiatives designed to safeguard financial resilience and sustain economic momentum.

“The UAE banking sector stands as one of the most resilient and well-regulated globally,” he said, pointing to strong liquidity buffers and continued economic diversification as key pillars supporting sustainable growth.

He highlighted the Central Bank’s Financial Institutions Resilience Package (FIRP) as a significant step in strengthening the system’s ability to maintain credit flows during periods of uncertainty. Backed by foreign exchange reserves exceeding Dh1 trillion, the UAE’s financial system remains well-positioned to absorb shocks while supporting economic activity.

The country’s sovereign credit profile also reflects this strength, with a stable outlook and high investment-grade ratings reinforcing international confidence in the UAE’s economic fundamentals.

Within this supportive environment, United Arab Bank has reinforced its financial position, with Sheikh Mohammed noting that the lender operates “from a position of clear financial strength and improved asset quality”.

The bank’s capital adequacy ratio stands at 20.4 per cent, comfortably above regulatory requirements, while its non-performing loan (NPL) ratio has declined sharply from 8.2 per cent at the end of 2022 to less than 3 per cent today.

This improvement, he said, reflects disciplined execution, strengthened underwriting standards and a sustained focus on risk quality across the organisation.

UAB has also taken significant steps to bolster its capital base, including a fully subscribed Dh1.03 billion rights issue and the securing of a Dh1 billion senior unsecured term loan.

“These milestones demonstrate strong investor confidence and market support,” Sheikh Mohammed said, adding that the bank has positioned itself proactively ahead of market cycles rather than reacting to them.

Risk management, he stressed, is central to UAB’s strategy and is embedded at the board level through a comprehensive enterprise-wide framework.

“For UAB, effective risk management is not only protective, but also an enabler of resilience, customer confidence and long-term value creation,” he said.

Sheikh Mohammed underscored UAB’s close alignment with regulators and national authorities, noting that the bank operates within a highly coordinated financial ecosystem.

He said UAB actively contributes to strengthening the country’s financial infrastructure through collaboration with key initiatives, including the roll-out of Jaywan cards in partnership with Al Etihad Payments, as well as integration with AANI, the UAE’s instant payments platform, and Buna, the regional cross-border payments system.

“These initiatives go beyond infrastructure; they are foundational to building a more efficient, inclusive and future-ready financial ecosystem,” he said.

The bank also remains aligned with Central Bank guidance to ensure the continued flow of credit to the economy, particularly during periods when access to financing is critical for businesses and individuals.

“Being part of a coordinated national response means remaining operationally dependable, financially accessible and institutionally reliable for our customers,” he added.

Reassuring customers, Sheikh Mohammed emphasised continuity and stability, noting that all UAB services remain fully operational across branches, digital platforms and its 24/7 contact centre. “Our message is one of continuity, stability and confidence,” he said.

The bank has accelerated its digital transformation strategy, including the launch of a fully revamped mobile banking app in 2025, supported by strategic fintech partnerships to deliver an AI-powered personal banking experience.

This focus on innovation is complemented by a relationship-driven approach, particularly in serving corporates, mid-sized enterprises and families.

“As a mid-sized bank, our strength lies in our agility, responsiveness and ability to deliver tailored solutions,” Sheikh Mohammed said.

Customer trust is reflected in the bank’s financial performance, with deposits growing 31 per cent to Dh17.8 billion in 2025, while total assets reached Dh27 billion.

“These figures demonstrate strong and sustained confidence in the bank,” he added.

With the rapid shift towards digital banking, Sheikh Mohammed said cybersecurity has become a critical priority, receiving direct oversight at the board level.

UAB has made sustained investments in advanced technologies and partnerships with leading service providers to strengthen threat detection, prevention and response capabilities.

In 2025, the bank deployed artificial intelligence and machine learning tools across transaction monitoring, fraud detection and compliance workflows, significantly enhancing its ability to identify and mitigate risks proactively.

“We have also implemented robust data governance frameworks to ensure the security, integrity and quality of information across the bank,” he said.

“Cybersecurity requires constant evolution. As threats become more sophisticated, we continue to enhance our capabilities so customers can bank with confidence.”

Despite operating in a market dominated by larger institutions, Sheikh Mohammed said UAB’s competitive advantage lies in disciplined execution rather than scale.

He described 2025 as a “defining inflection point” for the bank, with net profit rising 45 per cent year-on-year to Dh438 million. This was accompanied by a return on equity of 16 per cent and an improvement in the cost-to-income ratio to 46 per cent.

Importantly, he noted that this performance was driven by execution quality and sustainable financial resilience, rather than aggressive expansion.

UAB’s strengthened capital base has also enhanced its ability to support corporate clients with confidence, while maintaining strong prudential buffers across economic cycles.

The bank’s improved financial profile has been recognised through rating upgrades and affirmations from leading international agencies, reflecting enhanced profitability, asset quality and governance.

“This external validation underscores that our positioning is anchored in fundamentals, not perception,” Sheikh Mohammed said.

The bank’s capital strengthening journey has had a direct impact on its ability to support SMEs and mid-market corporates — key contributors to the UAE’s real economy.

“A strong capital base allows us to extend credit, maintain facilities and stand by our customers during downturns,” Sheikh Mohammed said.

With a CET1 ratio of 16.4 per cent and capital adequacy ratio of 20.4 per cent, UAB has significant capacity to absorb shocks while continuing to lend across the economic cycle.

“Our customers can rely on UAB as a consistent partner in both expansionary periods and times of stress,” he added.

Looking ahead, Sheikh Mohammed said UAB’s priorities remain focused on long-term value creation, with customers at the centre of its strategy.

The bank will continue to maintain strong capital and liquidity positions, invest in cybersecurity and operational resilience, and enhance service delivery across all touchpoints.

Sustainability and governance will also remain integral to its long-term approach, aligned with the UAE’s broader economic vision.

In addition, UAB is advancing national priorities, including Emiratisation through its “Tomouh” programme, supporting UAE nationals through housing finance, and enabling businesses through trade finance and supply chain solutions.

With more than five decades of contribution to the UAE’s economic development, Sheikh Mohammed said the bank remains committed to playing a meaningful role in the country’s future.

“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,” he concluded.