The UAE banking sector demonstrated solid growth in the second quarter of 2024, with investments in monetary bills and Islamic certificates of deposit (CD) reaching AED 226.9 billion, a 10.3% increase from AED 205.7 billion in Q2 2023, according to the Central Bank of the UAE (CBUAE).
Shariah-compliant certificates of deposit saw significant demand, with investments totaling AED 43.9 billion by the end of June 2024. Additionally, the Central Bank’s foreign assets surged by 5.3% quarter-on-quarter, reaching AED 770.6 billion. This growth was primarily driven by a 9.1% rise in current account balances and deposits with foreign banks, alongside a 1% increase in other foreign assets, offsetting a 3.3% decline in foreign investments.
On a year-on-year basis, the CBUAE’s foreign assets soared by 30.1%, showcasing robust financial health in the UAE banking system. The total capital and reserves for banks operating in the UAE rose by 3.9% to AED 495.2 billion in Q2 2024, with a capital adequacy ratio of 18.3%, well above the regulatory requirement of 13% under Basel III guidelines.
Despite these gains, the number of branches of locally incorporated banks decreased to 482, while the total number of ATMs fell by 10 to 4,659 units. The number of financial institutions licensed by the CBUAE remained steady, with 23 locally incorporated banks, six GCC banks, and 21 other foreign banks operating across the UAE.
News Source: Emirates News Agency
