The UAE banking sector is entering “one of its most promising phases”, driven by economic diversification, sustained investment in national financial infrastructure and the country’s growing role as a global business hub, according to Dr Bernd van Linder, CEO of Commercial Bank of Dubai (CBD).
In an interview, van Linder said the clearest opportunities lie in corporate and business banking, transaction services and wealth management, along with a new generation of more intelligent financial experiences enabled by artificial intelligence (AI) and Open Finance.
Van Linder said competition in UAE banking has “never been more dynamic”, with established institutions, digital-first players and fintechs all raising customer expectations. He said CBD’s differentiation is “not about size”, but about combining the stability of an established institution with agility and innovation.
He said the bank aims to capture these opportunities through disciplined execution and prudent risk management. The bank reported a Common Equity Tier 1 (CET1) ratio of 12.71 per cent and improving asset quality, which he said leave it “well positioned to navigate uncertainty and support sustainable growth”.
Strong returns and cost discipline
For the first nine months of 2026, CBD’s after-tax return on equity reached 21.38 per cent, while its cost-to-income ratio stood at 26.53 per cent. Van Linder said the cost-to-income ratio reflects overall operating discipline, but is not a measure of AI-specific savings.
Non-funded income rose 2.6 per cent year-on-year over the period, supported by fee income. He said the strongest growth opportunities are in payments, transaction banking, wealth management and other value-added services, as customers increasingly seek integrated financial solutions rather than individual products.
AI rollout
Van Linder said CBD sees AI as a strategic investment rather than a standalone technology line item. The bank began with broad Copilot adoption to build familiarity, then moved to Merlin and a dedicated programme of AI agents supporting specialist banking workflows.
About 1,300 employees have completed AI training. He said success will be judged on processing efficiency, service quality, employee productivity and customer experience, rather than the number of tools deployed, and stressed the need for strong governance and human accountability.
Van Linder described small and medium-sized enterprises (SMEs) as a vital engine of the UAE economy. He said AI, Open Finance and digital identity solutions can help banks make better-informed lending decisions, simplify onboarding and deliver faster, more personalised services.
Through its UP by CBD initiative, entrepreneurs can access digitally enabled services with integrations including UAE Pass, Dubai Unified Licence, the Dubai Department of Economy and Tourism and Dubai Founders HQ, which are designed to simplify the journey from business setup to growth.
Looking ahead, Van Linder said the defining shift by 2030 will be from product-led banking to intelligent, connected financial services embedded in people’s everyday lives and businesses’ daily operations. Customers, he said, will expect their banks to be proactive and to anticipate their needs.
“The future of banking will belong to institutions that combine technological intelligence with human expertise and keep customers at the centre,” he said.
Source: Khaleej Times