The UAE’s central bank said banks were operating normally under stress.
The United Arab Emirates' banking system remains fully operational despite the escalation of regional tensions between the United States, Israel and Iran, the country's central bank said, as officials moved to calm markets this week after missile and drone strikes hit the country.
UAE Central Bank Governor Khaled Mohamed Balama said in a statement that banks, financial institutions and guarantors continue to operate with full efficiency and stability, and the sector is showing the highest level of resilience and stability.
The statement draws attention to the UAE's role as a regional financial hub and a growing hub for digital asset companies in a time of geopolitical tension.
The central bank cites strong liquidity and capital buffers
Regional tensions have escalated since last weekend's Iranian drone and missile strikes targeting the United Arab Emirates and neighboring countries, the Associated Press reported on Monday.
Debris from the hijacked projects has reportedly caused fire and damage to several locations in Dubai, including infrastructure around Jebel Ali Port and Dubai International Airport.
Despite these developments, the country's financial sector maintains strong balance indicators, the central bank said.
According to the statement, the capital adequacy ratio of the UAE banking system is about 17 percent and the liquidity coverage ratio is over 146.6 percent, which is above international regulatory limits.
Related: Bitcoin first, crypto at scale: In the UAE's layered digital asset strategy
Balama said total assets in the UAE's banking and finance sector exceed 5.42 trillion dirhams ($1.48 trillion). The regulator stated that it is working in coordination with financial institutions and authorities to monitor developments and ensure operational readiness.
UAE banks implement advanced risk management and business continuity frameworks aligned with international standards.
Crypto companies operate emergency plans
The UAE has become one of the fastest growing hubs for digital asset companies.
More than 1,800 crypto companies employ more than 8,600 people and operate in the UAE, with the Dubai DMCC Free Zone alone hosting more than 600 Web3 businesses.
Some digital asset companies operating in the region have also taken precautions amid geopolitical developments.
On Monday, the crypto exchange Bybit began to evaluate the security of its employees in the United Arab Emirates and activate regional support systems, according to a report from Wu Blockchain.
In an internal letter seen by Cointelegraph, BitGate CEO Gracie Chen told employees that the exchange had activated emergency protocols while monitoring the security situation in the Middle East.
“We have implemented emergency protocols and will support each of our colleagues during this special time,” Chen said.
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