Record earnings and strong credit growth have put UAE banks on a firm footing for 2026. A rapid digital shift is adding momentum even as global interest rates begin to soften.
The banking sector delivered its strongest performance in 2025, which proved that it functions as a vital economic base for the UAE. The three banks, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Emirates NBD, demonstrated substantial progress through their growth in profits, loan portfolios, and non-interest revenue streams.
FAB generated a net profit increase of almost 24%, reaching Dh21.1 billion due to higher revenue and a 36% growth in non-interest income. ADCB achieved a 22% rise in annual profits, leading to better-than-expected fourth-quarter results, with earnings up 30%. The loan portfolio of Emirates NBD grew by around 26 percent due to high demand for loans, both retail and corporate.
Sectoral data revealed that the net loans of the top 10 banks grew by around 6.5% QoQ in the third quarter of 2025, while deposits rose by 4.3%. Total banking assets showed an 18.1% year-on-year increase by September, which demonstrated strong liquidity and consistent lending activities.
The UAE's economic growth reached 4.9%, driven by non-oil sectors such as trade, tourism, construction, and financial services. Government spending and private investment continued to drive borrowing.
The S&P Global Ratings and Fitch Ratings projects strong profitability for 2026, despite lower global interest rates, which will reduce profit margins. The company will maintain financial stability through its high capital resources, excellent asset management, and various income streams from fees and investments.
Financial institutions are making substantial investments in artificial intelligence systems, automated processes, and digital banking services, which have already attracted 750000 customers to their conversational banking channels. The transformation results in decreased expenses while establishing new profit-generating opportunities.
The main factor driving expansion for businesses lies in corporate lending, which supports infrastructure and energy development projects. The combination of population expansion and a robust real estate market will drive demand for retail loans.
UAE banks will experience another year of constant growth in 2026 because their financial resources and cash reserves enable them to operate during ongoing economic growth.