UAE –  The UAE dominated the Middle Eastern banking sector, commanding the largest share of the region’s $3.20 trillion in banking assets.

A new report from Arthur D. Little (ADL) highlighted the UAE’s influential leadership in digital banking and its pivotal role in reshaping the industry across the GCC region.

As per the Central Bank of the UAE (CBUAE) 2023 annual report, the total assets of banks operating in the Gulf country hit $1.10 trillion. Meanwhile, the Saudi banks reported a 9.50% growth in total assets to $971 billion.

Yacin Mahieddine, Partner in the Global Financial Services practice at Arthur D. Little, said: "With the Central Bank’s digital currency initiative and groundbreaking strides in blockchain integration, the UAE is redefining what it means to be a modern financial hub.”

“The UAE is building a banking ecosystem where technology and customer-centricity are woven into its very fabric," Mahieddine added.

With a compound annual growth rate (CAGR) of 8.70% over the past two years, the UAE’s digital banking sector has accelerated, with continued growth projected at a CAGR of 4.80% from 2024 to 2029. In this regard, the sector is on track to reach $175.70 billion by 2029.

UAE banks are advancing through advanced AI, blockchain, and cloud technologies, setting a new standard for customer experience and operational efficiency.

CBUAE is considered the first mover in central bank digital currency, leading the Middle East with its transformative Central Bank Digital Currency (CBDC) programme.

Some UAE banking leaders have already integrated blockchain for cross-border payments, enabling faster and more secure transactions that set a regional benchmark for efficiency and innovation.

Nelson Danam, a member of the Global Financial Services Practice at Arthur D. Little, commented: "By investing in both innovation and the talent to drive it, UAE banks are not just catching up to global standards; they are challenging them. The next generation of digital banking is being shaped right here in the UAE, and it is a model that others will look to replicate."

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