The Central Bank of the UAE (CBUAE) in 2023 remained dedicated to safeguarding the UAE’s financial and monetary stability and protecting the integrity of its financial system.

 

Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, and Chairman of the Central Bank of the UAE (CBUAE), in his foreword to the CBUAE's Annual Report 2023, said: “In 2023, we marked the CBUAE’s Golden Jubilee, reaffirming our commitment to fostering sustainability and innovation and keeping pace with the latest global financial, economic, and environmental developments. The CBUAE’s 2023 Annual Report highlights the progress delivered in our journey towards excellence and the realisation of our vision to be among the top central banks globally.”

 

He added that the UAE’s GDP growth was 3.6% in 2023, with the country’s strong projected economic performance for 2024 confirming continued resilience, a WAM report said. The CBUAE projects that the UAE’s real GDP will increase to 3.9% in 2024, driven by a robust growth of 5.4% in the non-oil sector. The UAE is committed to sustainability and effectively combating climate change, demonstrated by the successful hosting of COP28. The conference set higher standards for climate action, with the UAE placing an emphasis on addressing climate change through an ambitious climate action strategy and its Net Zero 2050 initiative.

 

Climate change

He said: “The CBUAE’s efforts are aligned to the UAE leadership’s targets of mitigating climate change, particularly through the Green and Sustainable Finance Initiative aimed at addressing climate-related risks. Furthermore, the CBUAE united the UAE banking sector to mobilise AED1 trillion ($270 billion) in sustainable finance by 2030, a key announcement made during COP28. 

 

“Looking ahead, the CBUAE remains committed to implementing measures to mitigate climate-related risks and their potential impact on financial stability. This is in addition to continuing to assess the business models of licensed financial institutions (LFIs) to ensure their alignment with the transition towards a green economy.”

 

The CBUAE also played an active role in advancing the ongoing digital transformation of the country’s financial infrastructure. “We launched Al Etihad Payments (AEP) to manage the digital financial infrastructure and the UAE Domestic Card Scheme (DCS), Jaywan. Additionally, we developed the necessary infrastructure for the launch of the CBUAE’s Central Bank Digital Currency (CBDC) and a new Instant Payments Platform (IPP), Aani, which aims to enhance financial inclusion in the country," he said.

 

Emiratisation witin financial sector

Sheikh Mansour added: “Emiratisation within the financial sector remains a key priority for us. In 2023, we witnessed a significant increase in Emiratisation rates, demonstrated by the successful hiring of 2,720 UAE nationals, exceeding the target of 1,875. The Emiratisation rate in leading jobs in banks has increased by 8% to 31% in total.”

 

He said: “On anti-money laundering and countering the financing of terrorism (AML/CFT), in February 2024, the Financial Action Task Force (FATF) recognised the UAE’s strengthening of its frameworks in line with international best practice. As part of our commitment to safeguard the integrity of the UAE’s financial system, we will continue to work closely with other global central banks and relevant international authorities to uphold global AML/CFT standards.”

 

“As part of our commitment to protecting consumer’s rights, we issued “Ombudsman Unit for the UAE regulation”, followed by the launch of “Sandak” Unit, the first independent unit with a legal personality to settle banking and insurance disputes in the UAE and in the Middle East and North Africa.

 

“I would like to express my gratitude to our senior management, employees, and stakeholders for their support and commitment to the CBUAE’s vision of becoming a top global central bank. We are confident that the CBUAE will continue its unwavering pursuit of excellence, innovation, and robust policymaking to enhance monetary stability and preserve the integrity of the UAE’s financial system," he concluded.--TradeArabia News Service