UAE banks have demonstrated strong performance, outpacing their GCC peers despite geopolitical challenges. CI Capital's report highlights that UAE banks' profitability remains robust, with a projected return on equity (RoE) of 19.7% in 2025, significantly higher than the GCC average. The report identifies Abu Dhabi Commercial Bank (ADCB) as a top pick due to its attractive valuation and growth potential, while First Abu Dhabi Bank (FAB) and Emirates NBD (ENBD) also show strong banking indicators and valuations.

Loan performance has exceeded expectations, with an average growth of 9.5% year-to-date for the banks covered by CI Capital. This growth is expected to continue, with projections of mid-high teens growth for the year. The report also notes that UAE banks maintain ample liquidity, positioning them well for potential cross-border lending opportunities, particularly in Saudi Arabia, which is experiencing higher growth potential.