UAE central bank says financial system stable amid missile and drone attacks
The United Arab Emirates’ banking system remains fully operational despite escalating regional conflict between the US, Israel and Iran, the country’s central bank said, as authorities moved to reassure markets following missile and drone attacks in the country this week.
In a statement, Central Bank of the UAE Governor Khaled Mohamed Balama said banks, financial institutions and insurers “continue to operate with full efficiency and stability,” adding that the sector is showing “the highest levels of resilience and stability.”
The statement comes as the UAE’s role as a regional financial center and a growing hub for digital asset companies draws added attention to operational continuity during periods of geopolitical stress.
Central bank cites strong liquidity and capital buffers
Regional tensions escalated after Iranian drone and missile attacks targeted the UAE and neighboring countries last weekend, according to an Associated Press report published on Monday.
Debris from intercepted projectiles reportedly caused fires and damage near several sites in Dubai, including infrastructure around Jebel Ali Port and Dubai International Airport.
Despite the regional developments, the central bank said the country’s financial sector maintains strong balance sheet indicators.
According to the statement, the UAE banking system’s capital adequacy ratio stands at about 17%, while the liquidity coverage ratio exceeds 146.6%, both above international regulatory thresholds.
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Balama said total assets in the UAE banking and financial sector exceed 5.42 trillion dirhams ($1.48 trillion). The regulator said it continues to coordinate with financial institutions and authorities to monitor developments and ensure operational readiness.
It added that banks implement advanced risk management and business continuity frameworks aligned with international standards.
Crypto companies activate contingency plans
The UAE has emerged as one of the fastest-growing hubs for digital asset firms.
More than 1,800 crypto companies employ over 8,600 people and operate across the UAE, with Dubai’s DMCC free zone alone hosting more than 600 Web3 firms.
Some digital asset companies operating in the region have also taken precautionary steps amid the geopolitical developments.
On Monday, crypto exchange Bybit began reviewing the safety of its employees in the UAE and activating cross-regional support systems to maintain operations.
In an internal letter seen by Cointelegraph, Bitget CEO Gracy Chen told staff that the exchange had activated emergency protocols while monitoring the security situation in the Middle East.
“We have activated emergency protocols and will accompany and support every colleague during this special period," Chen wrote.
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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.
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