CBUAE’s 2023 Achievements: Securing Financial Stability and Promoting Sustainable Growth
The CBUAE’s 2023 Annual Report outlines the progress made in the bank’s journey towards excellence and its vision to be among the world’s top central banks.
3 min
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Minister of the Presidential Court, and Chairman of the CBUAE, announced that in alignment with the UAE’s commitment to development and competitiveness across various sectors, the CBUAE in 2023 focused on maintaining the country’s financial and monetary stability and ensuring the integrity of its financial system.
In his introduction to the CBUAE’s Annual Report 2023, Sheikh Mansour highlighted the Golden Jubilee of the CBUAE, reaffirming their dedication to sustainability, innovation, and keeping pace with global financial, economic, and environmental developments. The Annual Report showcases the progress towards achieving excellence and the vision of being among the top global central banks.
He also noted that the UAE’s GDP growth was 3.6% in 2023, with a strong economic performance projected for 2024, predicting a real GDP growth of 3.9%, driven by a 5.4% growth in the non-oil sector.
The UAE’s commitment to sustainability and combating climate change was emphasized by successfully hosting COP28, setting higher standards for climate action, and promoting the Net Zero 2050 initiative.
He said, “The CBUAE’s efforts are aligned to the UAE leadership’s targets of mitigating climate change, particularly through the Green and Sustainable Finance Initiative aimed at addressing climate-related risks. Furthermore, the CBUAE united the UAE banking sector to mobilise AED 1 trillion in sustainable finance by 2030, a key announcement made during COP28. Looking ahead, the CBUAE remains committed to implementing measures to mitigate climate-related risks and their potential impact on financial stability. This is in addition to continuing to assess the business models of licensed financial institutions (LFIs) to ensure their alignment with the transition towards a green economy.”
The CBUAE also played an active role in advancing the ongoing digital transformation of the country’s financial infrastructure. “We launched Al Etihad Payments (AEP) to manage the digital financial infrastructure and the UAE Domestic Card Scheme (DCS), Jaywan. Additionally, we developed the necessary infrastructure for the launch of the CBUAE’s Central Bank Digital Currency (CBDC) and a new Instant Payments Platform (IPP), Aani, which aims to enhance financial inclusion in the country,” His Highness stated.
Sheikh Mansour added, “Emiratisation within the financial sector remains a key priority for us. In 2023, we witnessed a significant increase in Emiratisation rates, demonstrated by the successful hiring of 2,720 UAE nationals, exceeding the target of 1,875. The Emiratisation rate in leading jobs in banks has increased by 8 percent to 31 percent in total.”
His Highness said, “In the area of anti-money laundering and countering the financing of terrorism (AML/CFT), in February 2024, the Financial Action Task Force (FATF) recognised the UAE’s strengthening of its frameworks in line with international best practice. As part of our commitment to safeguard the integrity of the UAE’s financial system, we will continue to work closely with other global central banks and relevant international authorities to uphold global AML/CFT standards.”
“As part of our commitment to protecting consumer’s rights, we issued “Ombudsman Unit for the United Arab Emirates regulation”, followed by the launch of “Sandak” Unit, the first independent unit with a legal personality to settle banking and insurance disputes in the United Arab Emirates and in the Middle East and North Africa.
“I would like to express my gratitude to our senior management, employees, and stakeholders for their support and commitment to the CBUAE’s vision of becoming a top global central bank. We are confident that the CBUAE will continue its unwavering pursuit of excellence, innovation, and robust policymaking to enhance monetary stability and preserve the integrity of the UAE’s financial system,” he concluded.
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Employment grew for the 16th consecutive month as companies expanded.
2 min
According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
