This report does not constitute a rating action. Strong economic performance on the back of economic and social reforms following the COVID-19 pandemic, banks? precautionary provisioning, and expected interest rate cuts in the last quarter of 2025 and into 2026 will help support the banking sector?s overall asset quality profile, in our view. New regulatory requirements will also promote quicker collateral realization while enhancing provision coverage. Therefore, we think that United Arab Emirates (UAE) banks? credit risk is receding, and we improved our assessment of the economic risk score for UAE?s banking system to ?5? from ?6?. The Banking Industry Country Risk Assessment (BICRA) group remains unchanged at ?5? and the bank anchor, which is our starting point to rate
