The UAE banking sector has reached a historic milestone, with its total capital and reserves exceeding AED500 billion for the first time as of July 2024. According to the latest figures from the Central Bank of the UAE (CBUAE), capital and reserves in the sector grew by 10.5% year-on-year, rising from AED454.9 billion in July 2023 to AED502.6 billion in July 2024. This increase underscores the banking sector’s resilience and its crucial role in the country’s economic stability and growth.
The sector’s financial strength was further bolstered in the first seven months of 2024, as capital and reserves grew by AED13.3 billion, moving from AED489.3 billion at the end of 2023 to the current all-time high. These figures, published by the CBUAE, include current year profits but exclude subordinated borrowings and deposits.
National banks constitute the majority of the UAE’s banking capital and reserves, holding 86.3% of the total, or AED433.7 billion by July 2024. This represents a 10.4% year-on-year increase, emphasizing the dominance and continued growth of local banks in the sector. Foreign banks also saw positive momentum, contributing 13.7% to the total, with their capital and reserves reaching AED68.9 billion in July 2024, reflecting an 11.1% year-on-year rise.
This record-high capital and reserve level demonstrates the UAE banking sector’s robust foundation and its capacity to support the nation’s economic development. With this financial strength, UAE banks are well-positioned to drive further economic initiatives and provide stability in a dynamic global financial environment. The CBUAE data highlights the sector’s solid growth trajectory and reinforces its essential role in underpinning the UAE’s economic resilience and long-term prosperity.
News Source: Emirates News Agency
