The Central Bank of the UAE (CBUAE) has reported a rise in total gross banks' assets by 0.5 percent, reaching AED4,310.2 billion in June 2024, up from AED4,287.0 billion in May.
This growth includes bankers’ acceptances, with gross credit also increasing by 1.1 percent, totaling AED2,100.9 billion. Domestic credit expanded by 0.8 percent, while foreign credit surged by 2.9 percent.
The rise in domestic credit was driven by a 1.4 percent increase in public sector lending and a 1.0 percent increase in private sector credit. Notably, credit to non-banking financial institutions decreased by 0.6 percent, while government credit dropped by 1.1 percent.
Bank deposits saw a 0.5 percent rise, reaching AED2,692.5 billion. Non-resident deposits increased significantly by 8.4 percent, offsetting a slight 0.1 percent decrease in resident deposits.
The central bank's foreign assets reached a historic high of AED770.6 billion in June, marking a 0.5 percent increase from May. Foreign assets rose 30 percent year-on-year, largely due to higher bank balances abroad, foreign securities, and other assets.
The monetary base contracted by 0.3 percent, driven by a 42.2 percent drop in banks' overnight deposits with the CBUAE and a reduction in currency issued.
CBUAE's balance sheet grew by 24.2 percent year-on-year, reaching AED806.39 billion by June 2024, reflecting robust economic activity and financial stability in the UAE.
News Source: Emirates News Agency
