Revenue Diversification Driving Margin Resilience in UAE Banks

UAE banks are entering a phase where earnings resilience will be driven less by interest rates and more by business mix. While elevated interest rates are expected to support the top-line for longer, differences in loan composition, balance sheet repricing, and the growing contribution of non-interest income will increasingly determine profitability. Banks with higher corporate exposure, positive repricing gaps, and diversified fee-based income are better positioned to sustain returns, whereas retail-focused banks may face greater pressure if rates remain elevated and credit demand moderates.