The UAE’s financial system is more secure and efficient than ever before on the back of technological and structural advancements, the Central Bank of the UAE (CBUAE) said.
The apex bank said the country’s financial system continues to enhance security, operational efficiency, accessibility of mobile banking applications, online banking, and overall customer experience. “The widespread implementation of technology has bolstered the security and efficiency of the UAE’s financial system,”” it said.
The monetary authority’s statement comes on the heel of a spate of reforms and innovative measures it has introduced over the past several months.
Last week, the CBUAE launched Sanadak, the first ombudsman unit catering to consumers of licensed financial institutions and insurance companies in the Middle East and North Africa (Mena) region.
In January, the CBUAE made the first cross-border payment for its digital currency ‘Digital Dirham’ directly with China worth Dh50 million through the “mBridge,” which uses central bank digital currencies (CBDC) for international fund transfers between participating banks, based on distributed ledger technology, also known as blockchain. In 2023, the central bank gave the go-ahead for the country’s first paperless direct debit marketplace, to provide payers and merchants with an all-in-one solution to make regular monthly payments.
In its fourth quarter report of 2023, the regulator said it is committed to fostering innovation and enhancing the overall customer experience.
“Owing to the widespread implementation of technology throughout the economy, the UAE financial system is more secure and efficient than ever before,” the report noted.
The report also indicates stability in the banking sector, with the number of locally incorporated banks remaining constant at 22. Despite a decrease in the number of branches to 489 and electronic banking service units to 46, the UAE’s financial system continues to demonstrate resilience, supported by ongoing technological upgrades. The report also highlights the number of cash offices which remained constant at 21 by the end of December 2023.
The CBUAE noted that the presence of GCC banks in the UAE’s financial system remained steady, with six GCC banks and one wholesale GCC bank operating in the country. The branches of GCC banks also remain constant at six branches at the end of December 2023. Additionally, there were 22 other foreign banks with 66 branches.
The number of electronic banking service units of GCC banks in the UAE’s financial system remained constant at 21 units by the end of the fourth quarter of 2023.
The CBUAE said the diverse range of financial institutions licensed by it, include wholesale banks, representative offices, finance companies, and money changers. The total number of licensed institutions reached 173 by the end of the fourth quarter of 2023, reflecting the vibrant financial landscape of the UAE’s financial system.
Moreover, the total number of ATMs operating in the UAE reached 4,654 by the end of December 2023.
The UAE is the world’s third most trusted country, with all four institutions, including the government, business, NGOs, and media retaining significant trust levels, a survey has revealed.
Edelman Trust Barometer, which surveys 32,000 people in 28 countries focused on innovation, found that while the world grapples with disruptive change and hesitation towards the implementation of innovative solutions to address today’s challenges, the UAE instead embraces innovation thanks to the country’s long-term focus on the topic.