As of June 2024, the total capital and reserves of banks operating in the UAE have surged to AED 495.2 billion, marking a notable 10.6% increase from AED 447.8 billion in June 2023, according to the Central Bank of the UAE (CBUAE).
This growth reflects a monthly rise of 1.5% and a 1.2% increase for the first half of the year.
The CBUAE’s latest figures reveal that national banks hold the majority of this capital, accounting for 86.3% of the total, equivalent to AED 427.5 billion—an increase of 10.6% year-on-year. Foreign banks contribute 13.7% to the total, with capital reaching AED 67.7 billion, also up by 10.6% from the previous year.
In addition to the capital growth, banks' investments have hit a historic high, surpassing AED 680 billion by the end of June 2024. This represents an 18.4% increase from AED 574.3 billion in June 2023. The investments rose by 1.07% from AED 673 billion in May and by 7.1% in the first half of the year from AED 635.1 billion at the end of 2023.
Bonds held to maturity dominate the investment portfolio, constituting 48.8% with AED 332.2 billion, reflecting a 26.2% year-on-year increase. Investments in debt securities stand at AED 279.6 billion, representing 41.1% of total investments, with a 12.5% annual rise. Investments in equities have also seen significant growth, reaching AED 16.7 billion, up 38% year-on-year.
The statistics underscore the robust health and growth trajectory of the UAE banking sector, reflecting increased investor confidence and financial stability.
News Source: Emirates News Agency
