Story · United Arab Emirates · 17 Aug 2026
UAE central bank reports resilient banks and strong 2025 growth
The annual stability review links robust output and low inflation to the strength of banks, credit and the wider financial system.
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+6.2%
UAE real GDP growth, 2025
+4.3%
UAE hydrocarbon GDP growth, 2025
+6.8%
UAE non-hydrocarbon GDP growth, 2025
Exam link: Economic growth → business activity and investment → output, employment and aggregate demand
Understand the storyExpand Close
The Central Bank of the UAE reported 2025 real GDP growth of 6.2%, with non-hydrocarbon output up 6.8%, hydrocarbon output up 4.3% and inflation at 1.3%.
What happened
The 2025 Financial Stability Report assessed risks and resilience across UAE banks and markets, placing the financial system within the country's strong recent growth performance.
Why it matters
A resilient banking system can keep credit flowing during shocks, while non-oil growth indicates progress in economic diversification.
Economic context
Strong headline growth does not remove exposure to global finance and energy cycles, so capital buffers, liquidity and credit quality remain important.
All key dataExpand Close
- UAE real GDP growth, 2025
- +6.2%
- UAE hydrocarbon GDP growth, 2025
- +4.3%
- UAE consumer-price inflation, 2025
- 1.3%
- UAE non-hydrocarbon GDP growth, 2025
- +6.8%
Terms explainedExpand Close
Real GDP
The value of output after adjusting for inflation, so changes reflect the amount produced rather than just higher prices.
Use it in an examExpand Close
Evidence
+6.2% — UAE real GDP growth, 2025
Explain
A resilient banking system can keep credit flowing during shocks, while non-oil growth indicates progress in economic diversification.
Evaluate
Strong headline growth does not remove exposure to global finance and energy cycles, so capital buffers, liquidity and credit quality remain important.
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