In a significant financial milestone, banks operating within the United Arab Emirates have collectively reached an aggregate capital and reserves sum of Dh500 billion as of January 2024. This figure, released by the Central Bank of the UAE (CBUAE), indicates a substantial 13.3% year-over-year growth from Dh438.6 billion in January 2023, highlighting the robust health and expansion of the UAE banking sector.
The month-over-month data also presents an upward trend, with a 1.7% increase from Dh488.7 billion in December 2023, amounting to a Dh8.1 billion increment. This growth reflects the dynamic nature of the UAE’s banking industry and its ability to adapt and thrive in varying economic climates.
National banks, which form the backbone of the UAE’s banking system, contributed significantly to this achievement. They accounted for 86.5% of the total capital and reserves, equating to Dh429.4 billion, marking a 13.2% increase from the previous year. This progression signifies the strength and stability of national banks in the UAE, showcasing their capacity to support the country’s financial growth and stability.
Foreign banks also displayed a commendable performance, comprising 14% of the total with Dh67.4 billion. This sector experienced a 13.7% growth compared to January 2023, underlining the global confidence in the UAE’s banking industry and its attractiveness as an international financial hub.
Region-wise, the Emirate of Dubai led the growth, with banks there accumulating Dh243.6 billion in capital and reserves, indicating a substantial 15.4% annual growth. Abu Dhabi followed closely with Dh215.2 billion, a 10.4% increase, while other emirates collectively reported Dh38 billion, a noteworthy 16.2% rise.
The distinction between conventional and Islamic banking sectors also portrayed positive growth trajectories. Conventional banks recorded Dh417.2 billion, a 13.8% annual increase, while Islamic banks achieved Dh79.6 billion, a 10.4% rise. These figures not only depict the diversity and resilience of the UAE banking sector but also its capability to cater to varied financial needs and preferences.
This substantial growth in the capital and reserves of UAE-based banks is a testament to the country’s robust economic policies, fostering a stable and prosperous banking environment. The growth reflects the UAE’s strategic position as a leading global financial center and its ongoing commitment to financial excellence and innovation.
