The UAE’s banking sector marked a significant milestone this year with total capital and reserves exceeding AED500 billion for the first time. As of July 2024, the sector’s capital and reserves witnessed a substantial year-on-year growth of 10.5 percent, rising from AED454.9 billion in July 2023 to AED502.6 billion ($136.84 billion) in July 2024.
UAE banks lead growth
According to the latest data from the Central Bank of the UAE (CBUAE), the banking sector’s capital and reserves experienced a notable increase of approximately AED13.3 billion during the first seven months of 2024, excluding subordinated borrowings and deposits and including current-year profits.
UAE banks took the lion’s share, accounting for 86.3 percent of the total capital and reserves in the banking sector. Their share reached AED433.7 billion by July 2024, reflecting a year-on-year growth of 10.4 percent. Foreign banks also played a significant role, contributing 13.7 percent to the total capital and reserves. Their share amounted to AED68.9 billion by the end of July, marking an 11.1 percent year-on-year increase.
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UAE’s banking sector resilient
This remarkable achievement highlights the strength and resilience of the UAE’s banking sector, solidifying its position as a key driver of the nation’s economic growth and stability.
In other news, CBUAE announced that the money supply aggregate M1 increased by 0.6 percent, from AED884.1 billion at the end of June 2024 to AED889.3 billion at the end of July 2024. This was due to AED0.2 billion and AED5.0 billion rise in currency in circulation outside banks and monetary deposits, respectively.
The money supply aggregate M2 also increased by 1.7 percent to AED2,205.9 billion at the end of July 2024. The central bank attributed this rise to an elevated M1 and AED31.3 billion growth in quasi-monetary deposits. Meanwhile, the money supply aggregate M3 also increased by 1.7 percent, from AED2,632.0 billion at the end of June 2024 to AED2,676.0 billion at the end of July 2024. M3 expanded due to the growth in M2 and AED7.5 billion increase in government deposits.
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