UAE national banks increased their investments in local stock markets by AED4.4 billion ($1.19 billion) over the past year, as reported by the latest data from the Central Bank of the UAE (CBUAE). By the end of May, these banks had elevated their equity investments to AED16.1 billion, marking a year-on-year (YoY) growth of 37.6 percent from AED11.7 billion in May 2023, WAM reported.
Meanwhile, foreign banks also contributed to local stock markets, raising their investments to AED300 million by the end of May, up from AED200 million a year earlier, which represents a 50 percent increase or AED100 million.
At the close of May, national banks comprised 94.9 percent of the total AED16.4 billion in equity investments by banks operating in the UAE, while foreign banks accounted for the remaining 5.1 percent. Traditional banks reported investments of AED14.2 billion in local stock markets, reflecting a YoY rise of 52.7 percent or AED4.9 billion compared to AED9.3 billion in May 2023.
Read more: CBUAE’s foreign assets surge 2.55 percent to $204.27 billion in April 2024
In contrast, investments by Islamic banks in local stock markets reached AED2.2 billion at the end of May, which is a year-on-year decline of 15.4 percent from AED2.6 billion in May 2023.
According to CBUAE statistics, Abu Dhabi banks had investments totaling approximately AED11.4 billion in local stock markets, while Dubai banks reported investments of AED2.2 billion, and banks in other emirates contributed around AED2.8 billion by the end of May 2024.
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