By Elias Al Helou

UAE Islamic banks surpass $195.39 billion in assets, up 13.61 percent year-on-year

The assets of Islamic banks operating in the UAE increased by about $23.41 billion over the past 12 month

The assets of Islamic banks stood at $171.98 billion at the end of February 2023.

The assets of Islamic banks operating in the UAE increased by about AED86 billion ($23.41 billion) over the past 12 months, according to the latest statistics from the Central Bank of the UAE (CBUAE). The statistics showed that the assets of Islamic banks reached AED717.7 billion ($195.39 billion) at the end of February 2024, reflecting an annual increase of 13.61 percent compared to approximately AED631.7 billion ($171.98 billion) at the end of February 2023.

Islamic banks’ deposits grow rapidly

The Islamic banks’ deposits increased to AED509.4 billion at the end of February, reflecting an annual increase of 15.8 percent compared to AED439.9 billion in February 2023, an increase equivalent to AED69.5 billion over 12 months. The statistics also reported that the total investments of Islamic banks reached AED141.7 billion at the end of February.

Conventional banks

Meanwhile, during the same reference period, the UAE-based conventional banks had total assets of AED3.48 trillion, up 11.7 percent from AED3.116 trillion in February 2023. The conventional banks had around 82.9 percent of the total banking assets in the country at the end of February, amounting to AED4.198 trillion, compared to the share of Islamic banks, which is 17.1 percent.

Remarkable growth

In March 2023, data showed that the assets of Islamic banks surpassed AED700 billion ($190.57 billion) for the first time. According to the CBUAE data, Islamic banks recorded significant growth in assets, credit, deposits, and investments, solidifying their position in the country’s financial landscape. At the close of 2023, the assets of Islamic banks in the UAE stood at AED703.1 billion ($191.42 billion), marking an impressive annual increase of 11.5 percent from AED630.7 billion at the end of December 2022, an increase of AED72.4 billion. Notably, Islamic banks experienced a monthly growth of 0.6 percent, adding AED4.2 billion from November 2023 to December 2023.

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