Reserves held by UAE banks with the Central Bank of the UAE rose to AED439 billion ($119.5 billion) in the first quarter of 2026, underscoring strong liquidity buffers in the banking system as authorities press ahead with financial sector resilience measures.

The reserves include AED271 billion in required reserves and AED168 billion in surplus liquidity, reflecting banks’ continued preference to maintain sizeable balances with the central bank amid evolving global and regional conditions.

The update was shared during a meeting chaired by Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), with chief executives of UAE banks, where discussions centred on liquidity conditions, regulatory initiatives and the rollout of the Financial Institutions Resilience Package (FIRP).

In addition to reserve balances, UAE banks are holding AED263 billion in central bank securities, including monetary bills and Islamic certificates of deposit, which provide an additional layer of readily deployable liquidity for short-term funding needs.

Total assets of the UAE banking sector reached AED5.5 trillion, reflecting continued expansion alongside strengthened liquidity positions.

The meeting reviewed the CBUAE’s key initiatives and projects, as well as the latest developments in the implementation of the Financial Institutions Resilience Package (FIRP), announced by the CBUAE on 17th March 2026 to strengthen the resilience of financial institutions.

The meeting addressed the major initiatives launched by the CBUAE under the Financial Infrastructure Transformation (FIT) Programme, which aim to enhance the operational resilience of financial institutions and improve the efficiency of digital payment systems. The CBUAE confirmed its progress on the implementation of financial digitalisation projects as scheduled, including the issuance of the UAE’s domestic card scheme “Jaywan”.

The attendees highlighted the progress achieved in expanding the scope of services offered through the Open Finance Platform “Al Tareq” and the Instant Payments Platform “Aani” initiatives that deepen the UAE’s position as a global financial hub and a leading destination for innovation and digital transformation.

Reaffirming its commitment to safeguarding financial stability and strengthening the resilience of the banking sector, the CBUAE urged banks to comply with regulatory guidelines on customer identity authentication, including the use of One-Time Passwords (OTP) through digital applications. These measures have played a key role in reducing electronic fraud incidents and enhancing consumer protection.

The participants discussed the operational aspects and implementation progress of the FIRP across its main pillars, said a WAM news agency report. 

They confirmed that the resilience package has been effective in achieving its objectives, most notably by proactively addressing the potential impacts on the economy and the banking sector, arising from the exceptional current circumstances. This was reflected in UAE banks’ active use of statutory reserve balances, regular testing of the term lending facilities and their efficient utilisation when necessary.

“The CBUAE remains committed to safeguarding the resilience of the financial system and enhancing its global competitiveness, in line with the UAE leadership’s vision," the CBUAE Governor stated.

He added: "Our ongoing engagement with bank CEOs reflects a strong partnership with licensed financial institutions and a shared commitment to maintaining a stable, resilient, and forward-looking banking sector that supports sustainable economic growth, underpinned by prudent risk management and robust governance.”