Matthew Escritt and Seya Rahnema of Pinsent Masons said the report (76-page / 16.3MB PDF) highlights the strength and scale of the UAE banking sector, despite an increasingly demanding operating environment, as well as opportunities for growth, including those linked to technological change.
According to the report, the UAE’s GDP grew 5.6% in 2025, driven largely by activity in non-oil sectors amidst the state’s aim of diversifying the UAE economy. The Central Bank said UAE banks manage assets valued at AED 5.4 trillion (US$1.47 trillion), that lenders’ credit portfolios grew 17.9% compared to the year before, and that deposits also grew, by 16.2%.
In 2025, inflation in the UAE fell to 1.3%, down from 1.7% in 2024, though it is projected to rise to 2% in 2027, with “rent prices and external factors” cited as the drivers of that expected increase.
Escritt said the report highlights clear opportunities for banks to expand balance sheets, deploy capital and support economic development.
Escritt said: “The report highlights that UAE banks are operating from a position of strength, with scale, balance‑sheet capacity and liquidity to support continued growth. Double‑digit growth in credit and deposits, alongside strong capital and funding conditions, creates clear opportunities to expand lending activity, deploy capital efficiently and support the next phase of economic diversification, particularly across non‑oil sectors.”
“At the same time, the report signals an evolution in how growth will be delivered. Digital transformation initiatives, including open finance, modernised payments infrastructure, fintech partnerships and the rollout of the Digital Dirham, are reshaping banking business models and opening up new revenue opportunities in areas such as payments, transaction services and digital channels. For banks, these developments are increasingly commercial imperatives rather than purely technological change projects,” he added.
UAE’s open finance initiative went live last year and the number of licensed fintechs doubled, from 18 in 2024 to 36 in 2025. According to the report, the UAE rose to eighth in the Global FinTech Centre Index, maintaining its position as the highest‑ranked fintech jurisdiction in the Middle East.
According to Rahnema, the report also highlights that growth will be assessed alongside execution.
“As banks scale digital offerings and pursue more complex operating models, expectations around technology governance, cyber resilience, third‑party risk management and operational continuity continue to rise,” Rahnema said. “Board oversight, enterprise‑wide risk management, financial crime controls and climate‑related financial risk are becoming integral to sustainable growth strategies.”
“For banks, growth opportunities remain strong, but future success will depend on the ability to pair expansion and innovation with robust governance and resilient operating models. Against a challenging global backdrop, the report highlights that the UAE banking sector remains resilient, well‑capitalised and structurally well‑placed to continue growing,” he said.