Connect with us

Business Insights

UAE Banking Sector Sees Growth: Gross Assets Surpass Dh4.1 Trillion

UAE Banking Sector Sees Growth: Gross Assets Surpass Dh4.1 Trillion

The Central Bank of the UAE (CBUAE) has reported significant growth in the country’s banking sector, with gross banks’ assets reaching over Dh4.1 trillion by the end of January 2024. This increase, amounting to 0.8 percent from the previous month, highlights the resilience and stability of the UAE’s financial institutions.

According to the latest monetary and banking developments released by CBUAE, gross credit also saw a modest uptick of 0.2 percent, totaling Dh1.996 trillion by January 2024. Notably, foreign credit experienced a notable increase of 1.9 percent, offsetting a slight decline in domestic credit. While credit to the government sector, public sector, and non-banking financial institutions decreased marginally, credit to the private sector saw a 0.5 percent rise during the same period.

Total bank deposits registered a growth of 0.7 percent, climbing from Dh2.521 trillion in December 2023 to Dh2.539 trillion by January 2024. The expansion in resident deposits, particularly in the government sector and private sector, drove this increase, compensating for a decrease in non-resident deposits.

The monetary base expanded by 1.8 percent, reaching Dh670.9 billion by the end of January 2024. This expansion was primarily fueled by an increase in monetary bills and Islamic certificates of deposit, indicating heightened liquidity in the financial system.

In terms of money supply aggregates, M1, which includes currency in circulation outside banks and monetary deposits, increased by 0.1 percent. Meanwhile, M2, comprising M1 and quasi-monetary deposits, saw a 0.2 percent rise. The broadest measure of money supply, M3, expanded by 1.3 percent, driven by an increase in government deposits.

The growth witnessed in the banking sector reflects the overall economic resilience of the UAE amid global uncertainties. As a major financial hub in the region, the UAE continues to attract investments and maintain its position as a stable and attractive destination for businesses and investors.

CBUAE’s proactive measures and prudent policies have played a crucial role in ensuring the stability and soundness of the banking sector. By closely monitoring key indicators and implementing appropriate regulatory measures, the central bank has effectively managed risks and supported sustainable growth in the financial industry.

The positive performance of the banking sector bodes well for the UAE’s economy, indicating robust fundamentals and resilience against external shocks. With ongoing initiatives aimed at enhancing transparency, promoting financial inclusion, and fostering innovation, the UAE is well-positioned to navigate future challenges and capitalize on emerging opportunities in the global financial landscape.

Overall, the latest data released by CBUAE reaffirms the strength and stability of the UAE’s banking sector, underscoring its pivotal role in driving economic growth and prosperity in the country.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *