UAE Bank Federation showcases how smart banking will help UAE GDP reach 20% by 2031

UAE Bank Federation showcases how smart banking will help UAE GDP reach 20% by 2031

The UAE Banks Federation (UBF), during the 14th edition of the AIM Congress in Abu Dhabi, emphasized the importance of continuing initiatives and efforts to advance smart banking services to build a digital economy characterized by prosperity, resilience, financial inclusion, transparency, diversification, and sustainability where UAE GDP will reach 20% by 2031. They also noted that UAE Banks are continuing to invest in technologies such as AI, Blockchain, data analytics and cloud computing.

The AIM Investment Summit, taking place from April 7 to 9, 2025, under the theme “The New Wave of a Globalized Investment Landscape: Towards a New Balanced World Structure,” hosts heads of state, more than 60 ministers and central bank governors, 30 city mayors, 1,250 speakers, 16 heads of stock markets, 600 exhibitors, and over 20,000 participants from 180 countries—highlighting its status as a leading global investment platform.

In his keynote speech at the “Future of Finance” session, which featured senior officials and experts from the banking, finance, and technology sectors, Mr. Jamal Saleh, Director General of UBF, said, “The banking sector is distinguished by its progressive approach in adopting and developing advanced technologies to deliver seamless and secure banking services to customers. The proactive role of the Central Bank of the UAE fosters innovation to meet the evolving needs of diverse customer segments and keep pace with rapid advancements in fintech, while ensuring optimal conditions for protecting digital infrastructure and cybersecurity.”

He added: “Guided by the visionary leadership of the UAE, the country is redefining innovation and ambition across various fields, spearheading digital transformation and smart services. The UAE Digital Strategy aims to double the digital economy’s contribution to the GDP, from 9.7% to over 20% by 2031, underscoring the commitment to strengthening its leading status as a global center for finance, investment, and trade.”

He noted that UAE bank investments in technology infrastructure and digital channels has increased the adoption of digital services with now more than 95% of all transactions conducted digitally.

He also added that UAE banking sector is at the forefront of these efforts by deploying blockchain, artificial intelligence, data analytics, and cloud computing to provide better services, enhance operational excellence, and improve risk management and regulatory compliance.

England Institute of Chartered accountants and UAE Banks join forces for digital assets

England Institute of Chartered accountants and UAE Banks join forces for digital assets

The Institute of Chartered Accountants in England and Wales (ICAEW) joins forces with the UAE Banks Federation (UBF), to help companies navigate the changing digital assets landscape. This initiative coincides with the UAE’s advanced pilot of a Central Bank Digital Currency (CBDC), which is designed to work alongside traditional physical currencies, offering a secure and efficient method of digital transactions. .

Hanadi Khalife, head of Middle East at ICAEW, commented, “The UAE is setting a global standard with its proactive adoption of CBDCs. Our partnership with the UAE Banks Federation is testament to our commitment to guiding this transformation. Accountants play a crucial role in ensuring organizational compliance and success in this new digital era.”

The announcement was made during a virtual event. Panels of experts explored the UAE digital currency landscape highlighting the potential of CBDCs in transforming bank operations.

One panelist, Jamal Saleh, director general of UAE Banks Federation, shared his view, “The UAE’s progressive approach to CBDCs and AI places it at the forefront of financial innovation. Embracing digital assets presents vast opportunities, but it also requires robust cybersecurity measures and interdepartmental collaboration. Through joint efforts, such as our work with ICAEW, and constant upskilling, companies can achieve secure and compliant integration of digital assets.”

However, they also highlighted the associated challenges with this digital shift. As digitization and AI adoption increase, so will the risk of cybercrime, necessitating robust security measures. With bad actors constantly innovating new ways to exploit vulnerabilities and steal sensitive financial data, the panel urged organizations to continuously improve their cybersecurity measures to protect against these growing threats.
Panelists also focused on the absence of a standardized accounting framework for digital assets, which can lead to inconsistencies in reporting, impacting investor confidence and potentially complicating regulatory compliance. Panelists encouraged organizations to proactively develop robust accounting practices and called for industry-wide collaboration to establish clear, consistent frameworks.

They emphasized the importance of seamless cooperation between IT, audit, and finance functions within organizations to effectively manage digital assets and ensure secure, compliant integration, as well as the need to strengthen capabilities and expertise among teams.

Discussions also highlighted the UAE’s significant global position, accounting for five to 10 per cent of global digital asset trading volume.