Family credit in the UAE banking sector has reached an impressive $115 billion, as reported by the Arab Monetary Fund. While the Saudi banking sector saw family credit standing at around $331.6 billion last year. Among Arab countries, Algeria led in growth with a 12.8 percent increase in family credit, closely followed by the UAE with an 11.3 percent increase. Overall, family credit in Arab countries accounted for 38 percent of total private sector credit at the end of 2023, increasing from 37.1 percent in 2022.
In the UAE, the Central Bank reported that the liquid assets of the banking sector exceeded Dh800 billion by the end of Q2 2024. This represents a significant increase from the previous year, with a value of Dh801.52 billion recorded at the end of Q2 2024, marking a 20.2 percent year-on-year increase. These statistics demonstrate the financial stability and growth of the UAE’s banking sector, contributing to the overall economic prosperity of the country.
Regulatory capital ratios play a crucial role in measuring a bank’s capital as a percentage of risk-weighted assets. A high capital adequacy ratio provides protection for depositors and promotes stability within the financial system. The Banking sector in the UAE has shown strong capital ratios, with the Tier 1 Capital Ratio reaching 17 percent at the end of Q2 2024, an increase from previous quarters. Similarly, the Common Equity Tier 1 capital ratio also rose to 15.3 percent, highlighting the robust financial health of the banking sector.
The AMF noted that the UAE banks hold the largest share of assets within the Arab banking sector, accounting for 24.3 percent. This indicates the strong presence and influence of UAE banks within the region, showcasing their financial strength and stability. In addition, the Financial Stability Report for Arab countries highlighted the UAE banking sector’s impressive asset growth of 11 percent, driven by increased credit and investments, contributing to the overall growth of the country’s economy.
At the end of 2023, the total assets of the banking sector in Arab countries saw significant growth, reaching $4.574 trillion, a 5.0 percent increase from the previous year. This growth signifies the positive trajectory of the banking sector in the region, driven by various factors such as increased credit, investments, and real estate loans. The continuous growth and stability of the banking sector are crucial for the overall economic development and prosperity of Arab countries, showcasing a promising future for the financial industry in the region.
