UAE banks had more money in their accounts at the end of 2023, with a total of AED3.9 trillion ($1.062 trillion). This was a 10.7% increase compared to the previous year, and a 0.5% increase compared to July 2023.
The banks also had more money set aside for emergencies at the Central Bank, with reserves increasing by 34.5% to AED486.3 billion in August. They also gave out more loans, with gross credit going up by 5.5% to more than AED1.9 trillion.
People and businesses put more money into their bank accounts, with total deposits reaching about AED2.4 trillion in August. This was a 10.9% increase compared to the previous year and a 0.4% increase compared to July. The deposits from businesses increased the most, with an 18% rise to about AED1.5 trillion. The deposits from people living in the UAE went up by 13.7% to AED2.19 trillion.
The UAE’s banking industry was expected to grow in 2022 and beyond due to advances in technology and improvements in the global economy. In the first half of 2023, EY mentioned in a report that the UAE’s banking sector could benefit from new rules and plans to strengthen the financial industry, along with the Central Bank of the UAE’s goal to be one of the top central banks globally in promoting monetary and financial stability.
