Meeting chaired by Sheikh Mansour reviewed emerging risks, regulatory coordination and measures to strengthen financial system resilience
His Highness Sheikh Mansour bin Zayed Al Nahyan, UAE Vice President, Deputy Prime Minister, Chairman of the Presidential Court and Chairman of the Financial Stability Council, chaired a meeting of the Council’s board.
The Council reviewed measures taken in response to current economic and financial developments and approved initiatives involving artificial intelligence and greater engagement among regulators, financial institutions, industry experts and policymakers.
It also examined the implementation of decisions and recommendations issued at its previous meeting and reviewed the progress achieved by its working groups.
System readiness reviewed
The meeting was attended by Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, and Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates.
Other participants included Mohamed Ali Al Shorafa, Chairman of the Board of Directors of the UAE Capital Market Authority, and Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Global Market.
Fadel Abdulbaqi Al Ali, Chairman of the Board of Directors of the Dubai Financial Services Authority, and Ebrahim Obaid Alzaabi, Assistant Governor for Monetary Policy and Financial Stability at the Central Bank, also attended.
The participation of federal and financial free-zone regulators reflects the Council’s responsibility for coordinating policies and responses across different parts of the UAE financial system.
The Council was briefed on measures taken following its previous recommendations, as well as actions introduced in response to current developments. It also assessed the progress of its specialized working groups.
The review forms part of continuing efforts to strengthen the financial system’s preparedness, improve coordination among regulatory authorities and ensure potential risks can be identified and addressed before they develop into broader systemic pressures.
The Council was established under Federal Decree-Law No. 13 of 2023, which gave it responsibility for protecting national financial stability, identifying systemic vulnerabilities and improving crisis readiness.
The legislation also requires the Council to monitor local and international financial markets and support cooperation among the Central Bank, capital-market authorities and regulators in the UAE’s financial free zones.
AI plan advances
The Council reviewed its Artificial Intelligence Plan, which is designed to incorporate advanced technologies into its monitoring, analysis and decision-making activities.
The plan aims to strengthen the Council’s ability to identify and analyze risks, recognize changes in financial conditions and anticipate developments that could affect the broader system.
AI tools may also improve the processing of regulatory and market information, allowing the Council and its working groups to assess large volumes of data more efficiently and produce more timely risk analysis.
The initiative is intended to support decision-making while improving the Council’s operational efficiency and capacity to respond to rapidly changing financial and economic conditions.
The approach is consistent with the Central Bank’s expanding use of supervisory technology. Its Financial Stability Report 2024 said AI-driven analytics could support earlier identification of emerging threats and reduce the time spent on manual supervisory tasks.
The report also stressed the need for appropriate governance, data controls and risk-management frameworks when adopting AI. It identified potential challenges involving model transparency, data quality, cybersecurity, common technology providers and the possibility that similar automated models could amplify market movements during periods of stress.
The Council’s plan is therefore expected to focus on using AI to enhance regulatory capabilities while maintaining safeguards appropriate for financial stability work.
(Photo Credit: WAM)First conference approved
The Council approved a proposal to organize the First Financial Stability Conference as a national platform for dialogue on the development and resilience of the UAE financial sector.
The conference will bring together financial regulatory authorities, banks and other financial institutions, policymakers, industry specialists and experts.
Participants will discuss key financial developments, exchange knowledge and examine regulatory and industry best practices. The event is also expected to strengthen communication between public authorities and private financial institutions.
The conference will support the resilience and long-term sustainability of the financial sector by providing a forum for stakeholders to examine emerging risks, policy responses and changes in financial markets and technology.
It also supports the Council’s statutory mandate to promote awareness of financial stability and encourage the exchange of financial information and policy expertise among relevant authorities.
The event will expand engagement beyond the Council’s board and working groups, allowing industry participants and experts to contribute to national discussions about risks, preparedness and sustainable financial-sector growth.
Coordination remains central
The Council discussed several additional issues connected to its mandate and its continuing efforts to strengthen financial stability across the UAE.
Sheikh Mansour emphasized the importance of sustained cooperation and coordination among Council members and the authorities they represent.
He said closer collaboration was essential to strengthening the resilience of the financial system, ensuring it can keep pace with economic and financial developments and supporting sustainable development in the UAE.
The Central Bank’s latest available financial stability assessment, covering 2024, found that domestic risks remained contained and broadly unchanged from 2023. It said the banking system maintained capital and liquidity buffers above regulatory requirements and remained capable of absorbing severe hypothetical shocks.
The report also described the Council’s operationalization in 2024 as an important milestone that strengthened coordination among regulators, improved oversight of systemic risks and supported more timely policy responses.
The newly approved AI plan and proposed conference extend that work by combining advanced risk-monitoring capabilities with broader cooperation among regulators, financial institutions and policymakers.
