UAE banking sector marks steady growth with saving deposits exceeding AED263 billion

HiDubai Newswire -

Savings Deposits in the banking sector in the UAE, excluding interbank deposits, exceeded AED263 billion at the end of March 2023, according to the latest statistics from the UAE Central Bank.

The Central Bank’s statistics showed that Savings Deposits increased by 7.4 percent on a monthly basis, or AED18.1 billion, to reach AED263.14 billion at the end of March 2023. This was an increase of 4.7 percent on an annual basis, equivalent to AED11.8 billion, compared to AED251.33 billion in March 2022.

The local currency, the dirham, accounted for the largest share of Savings Deposits, with about 80.4 percent, or AED211.6 billion. The share of foreign currencies was 19.6 percent, with a value of AED51.52 billion.

Savings Deposits in banks have seen remarkable growth over the past few years. In 2018, these deposits stood at AED152 billion. This increased to AED172.2 billion in 2019, AED215.2 billion in 2020, AED241.8 billion in 2021, and AED245.8 billion in 2022.

Demand Deposits also rose to AED918.95 billion at the end of March 2023, with an annual growth rate of 3.25 percent. This was an increase of AED28.9 billion, from AED890.02 billion in March 2022. Demand Deposits were distributed as follows:

  • Local currency (dirham): AED659.64 billion (71.8 percent)
  • Foreign currencies: AED259.30 billion (28.2 percent)

Demand Deposits have also seen steady growth over the past few years. In 2018, these deposits stood at AED577.6 billion. This increased to AED599.6 billion in 2019, AED696.8 billion in 2020, AED848 billion in 2021, and AED907.3 billion in 2022.

According to the Central Bank’s bulletin, Time Deposits reached AED659.63 billion at the end of March 2023. This was an increase of 29.5 percent on an annual basis, equivalent to AED150.1 billion. Time Deposits also increased on a monthly basis by 3.45 percent, or AED22 billion, from AED637.61 billion at the end of February 2023. The share of the local currency (dirham) in Time Deposits was 58.8 percent, or AED387.56 billion. The share of foreign currencies was 41.2 percent, at a value of AED272.06 billion.

News Source: Emirates News Agency