Record Increase in Deposits Seen by Banks in UAE, Drawing in More than AED 54 Billion in First Half of 2024
UAE Banks Attract Over AED 54 Billion in New Deposits in 2024
In a show of growing confidence in UAE-based banks, the Central Bank of the UAE (CBUAE) reported that over AED 54 billion in new “3-month” deposits were attracted within the first five months of 2024. This significant influx brought the total three-month deposits to approximately AED 659.01 billion by the end of May, reflecting an impressive 8.9% growth since December 2023.
National banks took the lead in this surge, holding a commanding 90.9% of the deposits, totaling AED 598.9 billion. Foreign banks, on the other hand, held the remaining 9.1% of the deposits, amounting to AED 60.02 billion. The data also revealed that term deposits experienced a substantial increase, with an additional AED 18.1 billion deposited, bringing the total to AED 227.71 billion by May, marking an 8.6% rise from the previous year.
Furthermore, deposits for six to twelve months saw a 6% growth, reaching AED 275.89 billion, with national banks holding a dominant 92.2% share. Deposits exceeding 12 months also saw a modest increase of 0.52%, reaching AED 44.48 billion, with national banks accounting for a significant 94.1% of the total deposits in this category.
The statistics emphasize the growing confidence in UAE-based banks and their continued dominance in attracting deposits across various terms. The stability and reliability of these financial institutions have been key factors in instilling trust among depositors and investors alike.
The strong performance of UAE banks in attracting deposits also reflects positively on the overall economic landscape of the country. As one of the leading financial hubs in the region, the UAE has established itself as a magnet for investment and capital inflow. The government’s strategic initiatives to promote economic diversification and financial stability have played a significant role in bolstering the banking sector and attracting both domestic and international investors.
The banking industry in the UAE has witnessed dynamic growth and evolution in recent years, with banks adopting innovative technologies and digital solutions to enhance their services and customer experience. The sector’s resilience and adaptability in the face of changing market dynamics have further solidified its position as a key driver of economic growth in the country.
As the UAE continues to position itself as a global financial powerhouse, the robust performance of its banking sector serves as a testament to the strength and stability of the country’s economy. With a conducive regulatory environment and a proactive approach to embracing digital transformation, UAE banks are well-positioned to navigate challenges and capitalize on opportunities in an increasingly competitive global market.
In conclusion, the surge in deposits witnessed by UAE-based banks in 2024 underscores the confidence and trust that investors and depositors have in the country’s financial institutions. With continued growth and innovation, the banking sector in the UAE is poised for further expansion and success in the years to come.
Source: Emirates News Agency
