The UAE banking sector witnessed a substantial increase in transfer activities during January 2024, with the value of transfers executed through the UAE Funds Transfer System (UAEFTS) soaring to approximately AED1.512 trillion ($411.7 billion). Data from the Central Bank of the UAE (CBUAE) highlights a remarkable 24.4 percent annual growth in the value of transfers executed through the system, up from AED1.215 trillion in the year-ago period, reflecting the robustness of the country’s financial infrastructure.
Key insights
Transfers in January 2024 included interbank transfers totaling AED973.6 billion and transfers between bank customers amounting to AED538.9 billion. The UAEFTS, established by the CBUAE in August 2001, serves as the primary transfer system facilitating instant money transfers among participating entities.
In addition to transfers, the value of cheques cleared using the Image Cheque Clearing System (ICCS) surged to AED109.4 billion in January 2024. This figure represents a notable 11.8 percent increase in value and a 7.7 percent increase in number compared to the previous year, with a total of 1.965 million cheques processed during the month.
Read: Gross banks’ assets surged to over $1.11 trillion at end of January 2024: CBUAE
Central Bank statistics also shed light on cash movements within the UAE’s banking sector. The value of cash deposits in the central bank reached AED15.466 billion in January 2024. Simultaneously, cash withdrawals amounted to approximately AED14.9 billion, indicating the dynamic nature of cash flow management among banks and customers.
The surge in transfer activities, coupled with robust cheque clearing and cash movements, underscores the resilience and efficiency of the UAE banking sector. These trends reflect the growing confidence in the country’s financial infrastructure and highlight its role as a regional financial hub.
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