Despite the ongoing regional conflict, UAE banks did not ask for or receive a large-scale government rescue package like the one given during Covid-19. Senior officials at the United Banks Federation confirmed that the banking sector stayed profitable and had plenty of cash available throughout the war period. The Central Bank only relaxed a few technical banking ratios to give lenders some breathing room — nothing close to the Dh200 billion support package that was rolled out during the pandemic.
Money Is Still Coming In, Not Going Out
AbdulAziz Al Ghurair, Chairman of the United Banks Federation and Mashreq Group, said that very little money left the UAE since the war began in late February. In fact, capital continued to flow into the country. He made it clear that banks are in their best shape ever and simply did not need the kind of help they received during Covid times. The Central Bank agreed and chose not to offer large financial support this time around.
Flexible Repayments for Businesses Facing Pressure
While no big bailout was needed, the Central Bank did allow banks to offer flexible repayment options to businesses genuinely affected by the war. Companies in tourism, restaurants, and logistics were given until the end of June to work out adjusted repayment plans. For everyday residents, basic banking needs like doing a FAB Balance Check Online, checking account activity, or managing transfers continued without any disruption throughout the entire conflict period.
Inflation May Rise to 3 Percent by End of Year
Officials warned that inflation could climb to around 3 percent by the end of 2026, mainly because of higher fuel, freight, and food import costs. Air freight in particular has become very expensive. Property buyers have also slowed down, waiting to see if prices will drop. However, mortgage defaults remain below 1 percent, which shows the overall financial system is still very healthy and well managed.
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Final Thoughts
The UAE banking sector has handled the regional war with remarkable strength and confidence. No emergency bailout was needed, money kept flowing in, and banks continued to grow. As Al Ghurair himself said — the UAE always bounces back stronger. There is every reason to stay, invest, and trust in the country’s future.
