The Central Bank confirmed that the continuation of economic growth, along with economic diversification policies and structural reforms, contributes to reducing the impact of imported inflation and maintaining price stability in the country. In a research paper obtained by 'Emirates Today', the Central Bank explained that studies indicate that inflation in the UAE is not dependent on a single factor, but is influenced by a mix of local and external factors. On the local side, rents and previous price stability play an important role in determining the inflation path. As for external factors, there is an impact from oil and global commodity prices, but their impact remains relatively limited thanks to the strength of monetary policy and exchange rate stability. The Central Bank highlighted that inflation rates globally have been witnessing a significant wave of increase since 2020, reaching around 8-9% in some advanced economies, which has prompted many central banks to tighten their monetary policies. In contrast, inflation rates in the UAE remained at more moderate levels, reaching about 4.8% in 2022, and then followed a downward path, reflecting the uniqueness of the national economy and its ability to absorb shocks. The Central Bank also noted that the nature of the UAE economy as an open, oil-exporting economy makes it necessary to use special economic models to understand inflation more accurately, instead of relying entirely on traditional models. The Central Bank mentioned that on the other hand, the labor market in the country shows high flexibility, thanks to reliance on expatriate labor, which reduces the impact of rising wages on inflation compared to industrial countries. However, inflation can be indirectly affected through changes in labor demand related to oil price cycles. The Central Bank concluded in its paper: 'In conclusion, the UAE model emerges as a distinctive case, where internal and external factors balance in shaping inflation, which enhances the economy's ability to maintain its stability despite global fluctuations'. Meanwhile, data issued by the Central Bank yesterday showed that 117 senior staff were appointed in national banks last January alone, bringing the total number of employees to 32,010 at the end of the month, compared to 31,893 at the end of December 2025, while the number of employees in foreign banks remained unchanged at 6,974. The data indicated that the Central Bank's gold reserves exceeded 43 billion dirhams at the end of last January, compared to 37.9 billion dirhams at the end of the previous December, with a monthly increase of 5.1 billion dirhams, equivalent to a growth rate of 13.5%. Deposits of individuals residing in the country increased to 866 billion dirhams at the end of last January, compared to 855.3 billion dirhams at the end of December, with a monthly increase of 10.7 billion dirhams, equivalent to a monthly growth rate of 1.3%, while savings deposits reached 413.6 billion dirhams at the end of January, compared to 400.5 billion dirhams at the end of December 2025, with a monthly increase of 13.1 billion dirhams and a growth rate of 3.3%.
