Revenue and credit impact
The ratings agency said payment revenues may face mild pressure as blockchain settlement expands. “Banks could lose a portion of the fees they currently charge for providing traditional payment services and money transfers.” It said this “could be offset by fees from new services, such as providing wallets or holding reserves for third-party issuers.”
On credit strength, S&P struck a steady tone. “We currently do not expect this to affect UAE banks’ business or financial profiles meaningfully.” It added, “we also believe that the regulators will aim to maintain the stability of the banking system.”
How the UAE advances faster
S&P said the UAE stands among the most advanced stablecoin jurisdictions in the Gulf. Bahrain allows stablecoins linked to several fiat currencies, while Saudi Arabia and Oman are still building formal frameworks. Qatar and Kuwait remain more restrictive toward crypto and stablecoin activity.
Globally, S&P said the UAE approach mirrors leading international regimes. “Under all these regulations, stablecoins are fully backed by reserves, assets are kept separate from other funds, issuers are licensed, and strong supervision is in place.” For UAE businesses and residents, that structure is now translating into regulated digital dirhams entering everyday payments.
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence.
Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.
