Today's Edition
YOUSEF AL BUSTANJI (ABU DHABI)
Financial transfers in the UAE market, involving banks and clients, grew by 35% during the first 10 months of 2023, reaching Dh13.9 trillion, compared with Dh10.3 trillion in the same period of 2022, according to data issued on Wednesday by the Central Bank of the UAE (CBUAE).
This significant growth in financial transfers in the local market reflects the bustling activity in the UAE banking sector. It also shows the broader contribution of business sectors in the national economy, financial markets and investment activity, in addition to the expansion in corporate business, increase in contracts, rise in the number of employees, and other economic activities that are reflected in financial transfers.
According to the CBUAE’s data, financial transfers between banks increased by 41.2% through October 2023, reaching approximately Dh8.9 trillion, compared with Dh6.3 trillion in the corresponding period of 2022.
Also, client transfers from companies and individuals in the local market increased by about 25% to reach around Dh5 trillion in the first 10 months of 2023 compared with approximately Dh4 trillion in the first 10 months of 2022.
The statistical data from the CBUAE showed that the cheques entering the state’s clearing system increased in value by about Dh23 billion, equivalent to a growth of 2.3% during the first 10 months of 2023, reaching Dh1.04 trillion compared with Dh1.017 trillion in the same period of 2022.
On the other hand, the data showed that the total investments of banks operating in the country (61 banks) recorded a new record level at the end of October 2023, reaching Dh601 billion, an increase of Dh107.3 billion, equivalent to a growth of 21.7% compared with their balance at the end of October 2022.
Most of the increase in bank investments during the period was in the category of bonds held until maturity, which increased their balance by about Dh98.6 billion during the comparison period, reaching Dh293.7 billion at the end of October 2023, recording a growth of 50.5% compared with their balance of Dh195 billion at the end of October 2022. This growth was expected in light of the rise in the basic interest rates on dollar bonds to their highest levels in 22 years, reaching approximately 5.5%.
The increase comes amid high liquidity available for banks operating in the country, as the total liquidity increased by Dh312 billion to reach Dh2.377 trillion at the end of October 2023, compared with Dh2.065 trillion through October 2022.
