UAE Banks Remain Resilient Amid Regional Tensions

May 14, 2026

84 min

May 14, 2026 03:31

UAE banks did not seek Covid-style bailout during war, says banking chief

## No Need for Covid-Style Bailout

The UAE banking sector has maintained stability during recent regional conflicts, according to senior officials. Unlike during the Covid-19 pandemic, banks did not require a large-scale financial rescue package. Instead, the Central Bank of the UAE provided limited support by relaxing some technical banking ratios.

## Minimal Capital Outflow

AbdulAziz Abdulla Al Ghurair, Chairman of the United Banks Federation, noted that there was minimal capital outflow from the UAE since the onset of the US-Israel-Iran conflict in late February. He emphasized that the banking sector remains in a strong position, with continued capital inflow.

## Temporary Relief Measures

While the pandemic saw a Dh200 billion support package, current relief measures focus on temporary repayment flexibility for businesses and individuals affected by the crisis. Al Ghurair highlighted the importance of supporting businesses, such as those in tourism, without impacting their financial standing.

## Inflation and Food Security Concerns

Officials have raised concerns about inflation, predicting a rise to around 3% by year-end due to increased fuel and import costs. The crisis has also sparked discussions on enhancing food security and local production, with potential regulatory changes to support domestic agriculture.

## Property Market and Strategic Planning

The property market has seen a slowdown, with buyers hesitant due to potential price drops. Additionally, the possibility of disruptions in the Strait of Hormuz has prompted businesses to explore alternative routes through Fujairah and the Arabian Sea.

## Optimism for the Future

Despite challenges, Al Ghurair remains optimistic about the UAE's resilience and future growth. He urged residents and businesses to remain in the country, highlighting the UAE's secure environment and potential for continued prosperity.

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