CBUAE Allows Case-by-Case Offshore Disaster Recovery for Banks

The Central Bank of the UAE (CBUAE) has allowed banks to seek approval to host disaster-recovery infrastructure outside the UAE on a case-by-case basis, according to information obtained by Unlock Blockchain from banking executives familiar with the discussions.

The measure appears aimed at ensuring operational continuity during a period of heightened geopolitical uncertainty. However, the central bank has not introduced a permanent policy change, and offshore hosting of banking data remains subject to individual regulatory approval.

In a recent statement, the CBUAE confirmed that banks, financial institutions, and insurance companies across the country continue to operate normally and provide services without disruption. The regulator emphasized that it is closely monitoring developments and remains committed to safeguarding the stability of the UAE’s financial system.

Offshore disaster recovery approvals reviewed individually

Banking executives told Unlock Blockchain that the CBUAE is reviewing requests from financial institutions to activate offshore disaster-recovery environments when necessary.

Importantly, the central bank has not specified preferred jurisdictions where such data hosting should take place. Instead, approvals are being granted on a case-by-case basis, leaving the choice of destination subject to regulatory review.

This approach allows the central bank to maintain oversight while giving banks the flexibility to activate backup infrastructure outside the country if required.

Executives at two banks active in the UAE’s digital asset ecosystem said financial institutions had previously requested the ability to rely on offshore disaster-recovery environments as a precautionary measure, even if their systems were not directly affected.

One executive described the move as a necessary step to protect the continuity of the banking system, while another called it an important measure for business continuity during uncertain times.

Cloud infrastructure and regional redundancy

Much of the modern banking infrastructure used by financial institutions runs on global cloud platforms such as Amazon Web Services and Microsoft Azure, which host a wide range of banking applications, payment platforms, and financial data processing systems.

Public documentation from these providers indicates that their cloud regions typically include multiple physically separated data centers designed to support redundancy and failover capabilities.