The combined capital and reserves of banks in the UAE exceeded Dh500 billion at the end of February 2024, with an increase of around 14.4 per cent compared to the previous year. National banks accounted for the majority of this total, making up around 86.5 per cent of the aggregate capital and reserves. Foreign banks held the remaining 13.5 per cent, reaching Dh67.8 billion at the end of February 2024. The statistics from the Central Bank of the UAE showed that banks operating in Dubai had a total capital and reserves of Dh246.4 billion, while banks in Abu Dhabi recorded Dh217 billion, and other emirates had around Dh38.1 billion.
Savings deposits in the UAE banking sector, excluding interbank deposits, reached Dh278.37 billion at the end of February 2024, showing a year-on-year growth of 13.6 per cent. The dirham accounted for the largest share of savings deposits at 83 per cent, while foreign currencies made up the remaining 17 per cent. The trend of savings deposits has been increasing steadily over the years, from Dh152 billion in 2018 to Dh245.8 billion in 2022. Demand deposits also saw a significant increase, reaching Dh1.05 trillion at the end of February 2024, with a growth rate of 14.8 per cent compared to the previous year.
Time deposits amounted to Dh817.1 billion at the end of February 2024, marking a 28.2 per cent increase year on year. The dirham made up 59 per cent of time deposits, while foreign currencies accounted for 41 per cent. Cash deposits also saw an upward trend, reaching Dh725.8 billion in February 2024, showing an 11 per cent increase compared to the previous year. The monthly increase in cash deposits was 1.92 per cent, equivalent to Dh13.7 billion compared to January 2024.
In conclusion, the UAE banking sector continues to show positive growth in terms of capital and reserves, savings deposits, demand deposits, time deposits, and cash deposits. National banks play a significant role in contributing to the aggregate capital and reserves, while foreign banks also have a notable share. The consistent increase in savings deposits over the years indicates a positive trend in the banking sector. Demand deposits, time deposits, and cash deposits have also shown steady growth, reflecting a healthy financial environment in the UAE. The data from the Central Bank of the UAE provides valuable insights into the performance of the banking sector and its contribution to the country’s economic stability.
