UAE banks’ total assets reached $1.2 trillion in October 2024, according to the Central Bank of the UAE
The total assets of UAE banks, including bankers’ acceptances, went up by 1.3% to over $1.21 trillion (AED 4.5 trillion) by the end of October 2024. This is an increase from $1.19 trillion (AED 4.4 trillion) in September, according to the Central Bank of the UAE (CBUAE).
UAE Banks
At the end of October last year, the total loans (gross credit) from UAE banks increased by 0.6% to $590.1 billion (AED 2.17 trillion), up from $588 billion (AED 2.16 trillion). This increase was due to more loans to both local and foreign customers, as reported in the CBUAE’s report on Monetary & Banking Developments for October 2024.
Domestic loans grew in several areas. There was a 0.2% rise in loans to the government, a 3% increase in loans to public sector entities (government-related businesses), and a 0.1% rise in loans to private businesses. However, loans to non-banking financial institutions dropped by 1.8%.
The loans to the government were likely due to ongoing infrastructure projects and investments in national development. The rise in loans to government-related entities shows strong activity in state-owned businesses, especially in energy, utilities, and transportation.
Rising Deposits
Bank deposits increased by 1.5% to $762 billion (AED 2.8 trillion) by the end of October 2024. This rise was because deposits from residents grew by 1.2%, and deposits from non-residents increased by 4.7%.
Resident deposits went up because of a 2.3% rise in government sector deposits, a 3.6% rise in government-related entity deposits, and a 1.1% rise in private sector deposits. However, deposits from non-banking financial institutions dropped by 13%.
The total amount of money that can be quickly used for spending (M1) increased by 1.5% to $247.7 billion (AED 909.9 billion) by the end of October, mainly due to more money in bank accounts.
The total money supply (M2), which includes M1 plus some less liquid money, went up by 0.9% to $626 billion (AED 2.3 trillion). The broader money supply (M3) also grew by 1.3% to $762 billion (AED 2.8 trillion).
The monetary base slightly dropped by 0.1% to $202 billion (AED 743.5 billion) by the end of October, mainly because of a large decrease in current accounts and overnight deposits held by banks at the Central Bank of the UAE (CBUAE).
Published: 27th January 2025
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