First Index: Dirham Stability Supports UAE Banks’ Rankings in First Bank’s Top 100 Arab Banks List

Exchange rate movements have become one of the most influential factors affecting bank performance and rankings worldwide, particularly as most regional and international rankings rely on converting financial statements into U.S. dollars to ensure comparability across banking institutions.

During Q1 of 2026, geopolitical developments—most notably the military escalation involving the United States, Israel, and Iran—placed pressure on global foreign exchange markets. This affected the currencies of several countries and, consequently, the U.S. dollar value of banks’ financial statements, despite some institutions continuing to record growth in their local currencies.

In contrast, UAE banks emerged as key beneficiaries of the stability of the UAE dirham against the U.S. dollar (at approximately AED 3.6725 per USD). This stability helped neutralize the impact of currency fluctuations on financial statements and preserve the dollar value of key financial indicators, supporting the stability of their positions in regional and international rankings.

The results of First Bank’s Top 100 Arab Banks ranking by the end of March 2026 confirm this trend. UAE banks demonstrated a high degree of stability compared with many of their regional peers, with 11 out of the 18 UAE banks included in the ranking maintaining their positions unchanged from year-end 2025.

First Abu Dhabi Bank retained its position at the top of the ranking, while Abu Dhabi Commercial Bank remained sixth. Dubai Islamic Bank held on to 12th place, Mashreq Bank maintained 13th place, Abu Dhabi Islamic Bank remained 19th, and Commercial Bank of Dubai continued to rank 31st.

Emirates Islamic Bank also maintained its position at 32nd place, Sharjah Islamic Bank remained 43rd, Ajman Bank held 76th place, while United Arab Bank and Commercial International Bank – UAE retained 80th and 83rd places, respectively.

Meanwhile, five UAE banks succeeded in improving their positions in the ranking, supported by growth in their asset bases. Most notably, «Emirates NBD» advanced to third place from fourth, after its assets increased by 4.5% quarter-on-quarter to reach 331.24 USD bn by the end of March 2026, compared with 317.04 USD bn at year-end 2025.

National Bank of Ras Al Khaimah also moved up one position to rank 39th by the end of March 2026, compared with 40th at the end of 2025.

WIO Bank recorded the strongest upward movement among UAE banks, climbing four places to 55th position from 59th, supported by 5.9% quarter-on-quarter asset growth, with total assets reaching 17.60 USD bn by the end of March 2026, compared with 16.63 USD bn at year-end 2025.

Bank of Sharjah advanced three positions to rank 64th by the end of March 2026, compared with 67th at year-end 2025, benefiting from 13.1% quarter-on-quarter asset growth, which lifted its assets to 14.89 USD bn from 13.17 USD bn. The Investment Bank also moved up one position to rank 98th.

On the other hand, declines were limited to only two banks. National Bank of Fujairah slipped one position to 50th place, while National Bank of Umm Al Qaiwain fell one place to 82nd. These modest movements further highlight the relative stability of UAE banks within the ranking.

The first-quarter 2026 results demonstrate that exchange-rate stability contributes not only to currency stability itself but also to enhancing banks’ competitiveness in regional and international rankings.

As these rankings are based on U.S. dollar-denominated comparisons, the strength and stability of the UAE dirham provided local banks with a relative advantage by preserving the dollar value of their financial positions. This helped maintain the stability of their rankings compared with banks whose local currencies experienced fluctuations, even when some of those institutions achieved strong growth in local-currency terms.