July 6, 2022
  • July 6, 2022

Great progress under the leadership of Khalifa bin Zayed

By on May 15, 2022 0

ABU DHABI: The financial and banking sector in the United Arab Emirates under the late Sheikh Khalifa bin Zayed Al Nahyan has made unprecedented achievements that reflect the notable success of the wise policies adopted by the late President to lay a solid foundation for sustainable development and global. conducive to enhancing the UAE’s status as a global financial center.

The Central Bank of the United Arab Emirates (CBUAE), under the leadership of the late Sheikh Khalifa bin Zayed Al Nahyan, succeeded in promoting monetary and financial stability, consumer protection, rational management of reserves, sound financial infrastructure and latest financial technology solutions. followed by major central banks around the world to strengthen monetary and financial stability and integrity and support competitiveness.

Khaled Mohammed Balama, as Governor of the CBUAE, told the Emirates News Agency (WAM) that “the late Sheikh Khalifa bin Zayed Al Nahyan, was a leader loyal to his country and his people who dedicated his life to serve them and humanity in general”. . His achievements have helped to enhance the status of the Emirates on the world stage”.

The performance of the UAE’s financial sector, under his leadership, has demonstrated the resilience and elasticity of the national banking system, coupled with the robustness and continued growth of the insurance sector which consolidates the country’s position regionally and global.

The banking system has remained resilient in the face of challenges under the able leadership of the late President of the United Arab Emirates. The CBUAE continued its work to strengthen the regulatory framework in all areas under its jurisdiction, while providing banks with additional operational capacity to respond to the repercussions of all challenges, including the COVID-19 pandemic, by rolling out temporary measures on capital and liquidity frameworks. The CBUAE also continues to review its macroprudential policy framework which aims to build resilience and limit the build-up of systemic risks to financial stability.

Banks’ total liquid assets at the end of the fourth quarter of 2021 stood at AED529.3 billion, up 9.1% quarter-on-quarter. Overall, the UAE banking system remained well capitalized, with an average capital adequacy ratio (CAR) at 17.2%, a Tier 1 capital ratio at 16.1% and a Common Equity Tier 1 (CET 1) ratio of 14.2%.

The Abu Dhabi Stock Exchange (ADX) stock price index rose 10.3% quarter-on-quarter in the fourth quarter of 2021, while the Dubai Financial Market (DFM) index rose 12, 3% quarter-on-quarter over the same period. The rise in the ADX and DFM was due to strong demand and positive market sentiment, in line with global equity markets, which also rose during the fourth quarter.

Project Aber, an initiative launched by the central banks of the United Arab Emirates and Saudi Arabia, was completed under the late president, to explore the viability of a single, dual-issue digital currency as a national settlement instrument. and cross-border between the two countries. The high-level goals of the initiative are to explore, experiment, and deepen the understanding of Distributed Ledger Technology (DLT) and analyze its maturity; explore an alternative DLT-based cross-border payment solution that can overcome the inefficiencies of existing cross-border interbank payment approaches; understand and experiment with dual issuance of a central bank digital currency; and benchmark results against those of other central banks.

On the occasion of the country’s 50th National Day, the United Arab Emirates has produced a new AED 50 banknote. This was to honor the former President of the United Arab Emirates, Sheikh Zayed bin Sultan Al Nahyan. The new banknote is the UAE’s first polymer banknote. This material is more durable and durable than standard banknotes. It lasts two to three times longer than its cotton counterparts and is fully recyclable, helping to reduce the environmental footprint.

In line with the UAE’s vision for Next 50, the CBUAE has worked to develop a roadmap for the next five decades that embraces artificial intelligence and big data in the banking and insurance sectors , as well as in the regulatory and supervisory systems, in pursuit of the ambitious development plans for the Central Bank of the United Arab Emirates to become one of the best in the world.