Overview:
The UAE's financial system demonstrates robust stability with the central bank reporting 5.3 trillion dirhams in sector assets and 90.8 billion dirhams in net profits for the first half of 2026. Real estate activity accelerates across emirates, while Abu Dhabi ports faces a conditional takeover offer. Global markets show mixed signals as US dollar weakness supports commodity prices and European equities.
Details:
The Central Bank of the UAE released its 2025 Financial Stability Report, confirming the banking sector's resilience with total assets expanding 17.1 percent to 5.3 trillion dirhams and net profits climbing 11.7 percent to 90.8 billion dirhams. Credit expansion increased 17.8 percent, reflecting sustained economic confidence. Banks in Dubai attracted 65 billion dirhams in new deposits during the first six months of 2026, reaching 1.613 trillion dirhams, while Abu Dhabi's banking institutions mobilized 86 billion dirhams in fresh deposits.
Real estate transactions surged across the emirates. Abu Dhabi recorded 131.5 billion dirhams in property deals during the first seven months of 2026, with sales valued at 94.29 billion dirhams. Dubai's residential market saw 35 billion dirhams in sales in July, representing five percent growth, encompassing 9,217 transactions. Ajman registered 2.91 billion dirhams in rental contracts, totaling 73,472 agreements in the first half.
Liumah, the Abu Dhabi government-owned holding company, announced a conditional voluntary cash offer to acquire all shares of Abu Dhabi Ports at 6.25 dirhams per share, representing a 23 percent premium. Abu Dhabi Ports shares surged to the maximum permitted increase of 15 percent to 5.87 dirhams following the announcement.
Outlook:
Investors are monitoring the Abu Dhabi Ports acquisition process and assessing conditions for deal completion. Banking sector performance will remain central to market confidence as credit expansion and deposit flows continue supporting economic growth across the UAE.