Skip to content Skip to Search
Skip navigation
Company Insights

Central Bank of the United Arab Emirates

Banking & Finance

Central Bank of the United Arab Emirates Overview

The Central Bank of the United Arab Emirates (Central Bank or CBUAE) is responsible for managing the monetary policy, currency and financial regulation in the UAE.

Previously this role was fulfilled by the Currency Board, which was set up in 1973 following the formation of the UAE in 1971.

On the day that the Currency Board was established, the new UAE dirham entered circulation to replace the Qatari riyal and Bahraini dinar.

The Currency Board was tasked with managing the UAE’s gold and foreign exchange reserves but did not have full central bank regulatory authority. The Central Bank of the UAE was established in 1980.

The CBUAE has powers to issue and manage the currency and ensure its stability, to manage the Emirates’ credit policy and to oversee the banking system.

It also plays a key role in implementing anti-money laundering measures and promoting sound banking practices and represents the UAE in international institutions such as the International Monetary Fund, the World Bank and the Arab Monetary Fund.

Central Bank of the United Arab Emirates News

Gold Souk, Abu Dhabi, United Arab Emirates, Middle East

Gulf jewellery sales suffer from gold’s rich streak

High gold prices amid widespread geopolitical uncertainty have dented jewellery sales in the Middle East this year. The trend is expected to continue in 2025. India’s sharp reduction of gold import duties in July, from 15 percent to 6 percent, boosted domestic sales but hit Middle Eastern merchants, according to industry insiders.  “After a weak […]

People, Person, Accessories

Gulf central banks follow US Fed with rate cuts

Key Gulf central banks lowered interest rates in line with the US Federal Reserve’s benchmark rate reduction by 25 basis points (bps) on Wednesday. The Central Bank of the UAE reduced the base rate on its overnight deposit facility by 25 bps to 4.4 percent from 4.65 percent, effective from Thursday.  Saudi Arabia cut repurchase (repo) […]

The Bitcoin Mena conference in Abu Dhabi, where AE Coin announced its approval

UAE stablecoin gets green light from Central Bank

UAE businesses could soon be able to accept AE Coin, the first regulated cryptocurrency in the Emirates. The AE Coin, which has just received regulatory approval from the Central Bank of the UAE, is pegged to the dirham, making it less volatile than other cryptocurrencies. Cryptos tied to a fiat, or government-issued, currency are known as […]

UAE bank ADCB signed up 210,000 new customers in Q3, with 84% joining via digital channels

UAE bank lending rises but profits hit by impairment charges

The aggregate net income of UAE banks dropped 5.5 percent in the third quarter of this year, as a jump in impairment charges dented profitability. Among the top 10 lenders in the UAE, aggregate income fell to AED20.3 billion ($5.5 billion) in Q3 2024, according to a report by professional services firm Alvarez & Marsal. […]

The Central Bank of the UAE reduced the base rate on its overnight deposit facility by 25 bps to 4.65%

Gulf central banks mirror US Fed interest rate cut

Most Gulf central banks lowered their key interest rates after the US Federal Reserve cut its benchmark rate by 25 basis points (bps) on Thursday. The Central Bank of the UAE reduced the base rate on its overnight deposit facility by 25 bps to 4.65 percent, effective Friday.  Saudi Arabia cut repurchase (repo) and reverse […]

The UAE has approved its largest-ever national budget for the fiscal year 2025, with spending set to hit AED 71.5 billion

UAE announces largest-ever budget for 2025

The UAE has approved its largest-ever national budget for the fiscal year 2025, with spending set to hit AED71.5 billion ($19.5 billion), after capital expenditure increased by nearly half in the early part of this year. The government expects to match the 2025 expenditure with AED71.5 billion in revenues over the same period. Social Development […]

The UAE’s record-breaking rainfall contributed to soaring levels of insurance payouts in the first half of this year

Insurance payouts surge in UAE after record rainfall

The UAE’s record-breaking rainfall contributed to soaring levels of insurance payouts in the first half of this year. The increase is also attributed to inflation, the Gulf state’s growing population and expanded insurance coverage across various sectors. The Central Bank of the UAE said in its quarterly economic review that the gross paid claims of […]

The Central Bank of the UAE reduced the base rate on its overnight deposit facility by 50 bps from 5.40% to 4.90%

Gulf central banks mirror US Federal Reserve rate cut

Gulf central banks lowered their key interest rates after the US Federal Reserve cut its benchmark rate by 50 basis points (bps) on Wednesday. The Central Bank of the UAE reduced the base rate on its overnight deposit facility by 50 bps from 5.40 to 4.90 percent, effective Thursday. Saudi Arabia mirrored the US move, […]