YOUSEF AL BUSTANJI (ABU DHABI)
Resident individual deposits in the UAE increased by Dh92 billion year-on-year (YoY), reaching their highest level of Dh693 billion by the end of the first quarter of 2024, an increase of 15%, according to data from the Central Bank of the UAE.
This increase in the balance of resident individual deposits on an annual basis until the end of March 2024 is the highest in terms of value in the country’s history and represents one of the highest growth rates since 2007 when resident individual deposits increased by Dh60 billion, a growth of 42% during the year.
The UAE has strengthened its position as one of the world’s most important financial centres in recent years, increasing its attractiveness to investors and private wealth holders. It recorded foreign direct investment inflows worth more than Dh112 billion, equivalent to $30.5 billion, during 2023. This result is about 27% higher than expectations that had projected attracting $24 billion during the past year and is also about 35% higher than the foreign direct investment inflows in 2022.
Central Bank data shows that deposits of individuals residing in the country increased by about Dh40 billion during the first quarter of 2024, which is almost equal to the increase recorded by deposits of individuals residing in the first quarter of 2023. According to official data, the UAE ranked second in the world after the United States in terms of the number of new projects established by foreign investors in the local market during 2023.
The UAE enjoys one of the most transparent markets in the world, with minimal government bureaucracy. It is one of the safest and most developed markets in terms of infrastructure, digital infrastructure, and modern legislative infrastructure.