YOUSEF AL BUSTANJI (ABU DHABI)

The total assets of banks operating in the UAE increased by Dh381 billion, reaching Dh3.996 trillion by the end of October 2023, registering a growth of 10.5% compared with their value of Dh3.615 trillion through October 2022, strengthening the UAE’s leadership in the banking sectors of the Middle East and North Africa, according to data released on Tuesday by the Central Bank of the UAE (CBUAE).

The data showed an increase in total banking deposits by Dh250 billion in a year, reaching Dh2.455 trillion by the end of October 2023 compared with Dh2.205 trillion at the end of October 2022, a growth of 11.3% during the period.

The data confirmed that the total liquidity in the country increased by Dh312 billion, reaching Dh2.377 trillion by the end of October 2023 compared with Dh2.065 trillion through October 2022, registering a growth of 15.1%.

Furthermore, the total assets of the CBUAE increased by Dh162 billion by the end of October 2023 to Dh648 billion, compared with Dh486 billion in the same period of 2022, a growth of 33.3% on an annual basis.

The increase in assets resulted from an increase in cash and bank balances by Dh58 billion, equivalent to a growth of 25.7%, amounting to Dh284 billion through October 2023 compared with Dh226 billion at the end of October 2022. Deposits on the asset side also increased by Dh62 billion, a growth of 124% in a year, reaching Dh112 billion by the end of October 2023, compared with Dh50 billion in the same period of 2022.

Investments of the CBUAE increased by Dh40 billion during the same comparison period to Dh207 billion, a growth of 24% compared with its balance in October 2022 of Dh167 billion.

The data shows that the increase in assets at the CBUAE was supported by the increase in liquidity and cash available to the banking sector in the country during the period, where the balance of current accounts and deposit accounts of banks operating in the country at the CBUAE increased by Dh88 billion, equivalent to a growth of 44.4%, amounting to Dh286 billion by the end of October 2023 compared with Dh198 billion through October 2022.

As the banks operating in the country also invested more funds in cash certificates and Islamic deposit certificates issued by the CBUAE, their balance increased by Dh54 billion, a growth of 34.4%, reaching Dh211 billion through October 2023 compared with Dh157 billion in the same period of 2022.

In addition, the balance of banknotes and coins issued by the CBUAE increased by about Dh13 billion, equivalent to a growth of 11.2%, reaching Dh129 billion at the end of October 2023 compared with Dh116 billion at the end of October 2022, which is an indicator of the increasing demand for the Emirati dirham, resulting from the rise in the value of cash circulating in the local market. Therefore, the balance of foreign assets at the CBUAE increased by Dh172 billion during the same comparison period, reaching Dh598 billion, recording a growth of 40.4% over a year compared with its balance of Dh426 billion in October 2022.

Foreign assets constitute the majority of the international reserves of the CBUAE, where the data shows that the bank balances and deposits belonging to the CBUAE at banks abroad increased by Dh121 billion, a growth of 49.2%, reaching Dh367 billion at the end of October 2023 compared with Dh246 billion at the end of October 2022.

Additionally, the balance of securities held by the CBUAE increased by Dh45 billion, equivalent to a growth of 37%, reaching Dh166 billion through October 2023 compared with Dh121 billion at the end of October 2022.