The central bank governor of the United Arab Emirates stated that the country’s banking and financial system remains strong, stable, and well-prepared to handle regional uncertainties following recent Middle East tensions.
He highlighted that the capital adequacy ratio of banks currently stands at 17%, while the liquidity coverage ratio exceeds 146.6%, indicating solid financial buffers and risk resilience.
Meanwhile, UAE stock markets experienced a decline in early trading after reopening on Wednesday. The markets had been suspended for two days following Iran’s missile and drone attacks on the Gulf state, which came after U.S. and Israeli strikes on Iran earlier in the week. Analysts note that despite short-term market reactions, the overall financial sector remains robust and well-capitalized.