UAE launches banking support package

DUBAI: The Central Bank of the UAE has launched a financial support package to strengthen the country’s banking sector amid global uncertainty.

The move was approved at a board meeting chaired by Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Chairman of the Presidential Court, and Chairman of the Board of Directors of the Central Bank of the UAE.

The central bank said the UAE’s financial system remains strong, with no major impact from current global challenges.

The UAE holds foreign reserves of over AED 1 trillion (about $270 billion), showing strong financial backing. Banks also have high liquidity, with around AED 920 billion ($250 billion) held at the central bank, including more than AED 400 billion ($109 billion in reserves).

The package will give banks easier access to cash, relax some rules, and allow them to use extra capital to continue lending. It also gives flexibility to support customers facing financial pressure.

“The CBUAE’s precautionary policies and proactive frameworks have consistently demonstrated their effectiveness,” Sheikh Mansour said.

The central bank added it is ready to take more steps if needed to protect the economy and financial system.