UAE bank investments, credit facilities, at their highest

UAE-based bank investments reached AED 580 billion ($157 bn) at the end of July 2023, the highest level in history. The figures UAE-based bank investments reached AED 580 billion ($157 bn) at the end of July 2023, the highest level in history. The figures were reflected in the latest statistics by the UAE Central Bank (CBUAE).

The data showed that these investments increased by 18.8 percent on an annual basis, from AED 487.7 billion in July 2022. On a monthly basis, investments of banks increased by 0.91 percent, from AED574.3 billion in June 2023.

Bonds held until maturity made up the biggest largest share of banks’ investments, amounting to AED 266.8 billion at the end of July 2023. This means an increase of 1.3 percent from the previous month when it was AED 263.3 billion.

Debt securities constituted nearly 43 percent of total investments, reaching AED 249.9 billion at the end of July 2023. This translates into an increase of 0.6 percent from AED 248.5 billion in June 2023.

Bank investments in stocks reached AED 12.5 billion at the end of July 2023, or an increase of 3.3 percent from the previous month. Then, they reached AED 12.1 billion. During the first seven months of 2023, bank investments in stocks increased by 5.9 percent, from AED 11.8 billion in December 2022.

According to UAECB statistics, other investments by banks amounted to AED 50.3 billion at the end of July 2023, an increase of 12.5 percent from AED 44.7 billion in July 2022.

Bank investments exclude any bank’s deposit with the CBUAE in the form of certificates of deposit and cash bills.

Read: UAE banks to exhibit strong performance

Credit Facilities

Credit facilities provided by national banks to business and industrial sectors increased by AED 28.5 billion in H1 2023,  also according to CBUAE.

Both sectors witnessed a 4 percent increase in cumulative credit balance to AED 745.6 billion at the end of June 2023. This balance reached AED 717.1 billion at the end of December 2022.

Loans provided by national banks to these sectors totaled AED 825.9 billion by the end of June in H1, or 90.3 percent of the combined credit balance of the two sectors.

Foreign banks contribute a far smaller share at 9.7 percent or AED 80.3 billion.

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