YOUSEF AL BUSTANJI (ABU DHABI)
The assets of the Central Bank of the UAE (CBUAE) reached a record high of Dh721 billion at the end of December 2023, an increase of Dh168 billion or 30.4% during the year, compared to Dh553 billion at the end of December 2022, according to data released by the CBUAE on Tuesday.
The data showed an increase in the CBUAE’s foreign assets of Dh187 billion, recording a growth of 37.9% during the past year, to reach a new record level of Dh681 billion at the end of December 2023, compared to Dh494 billion at the end of December 2022.
The increase in the CBUAE’s foreign assets is an important indicator of a large increase in the expected surplus to be announced in the UAE’s balance of payments during the same period, which was achieved as a result of the increase in goods and services exports, the growth of foreign direct investment flows to the traditional business sector, as well as investment in local financial markets and other securities such as bonds and sukuk issued by local entities, and the increase in the flow of funds and bank deposits to the local market.
These indicators reflect the performance of the financial and banking sector in the country, and the increasing attractiveness of the UAE market, which is expressed by the confidence of major global financial institutions, funds and investment portfolios, companies and investors who are looking for a market that enjoys security, transparency and financial integrity, and sustainable and profitable investment opportunities, at the same time.
The data shows that total banking assets in the UAE also rose to their highest historical level, to reach Dh4.075 trillion at the end of December 2023, an increase of Dh408 billion, recording a growth of 11.1% during 2023, compared to Dh3.667 trillion at the end of 2022.
According to the statistical data issued by the CBUAE, the banks operating in the UAE (61 banks) pumped Dh112 billion in new loans during 2023, a growth of 5.6%, to raise the total credit portfolio balance to Dh1.992 trillion at the end of December 2023, compared to Dh1.879 trillion at the end of December 2022.
The increase in the credit balance is an indicator of the continuation of the economic recovery phase that the national economy has been recording since the beginning of 2022, and confirms the decline in risk levels in the local market and the improvement in the ability of bank customers, companies and individuals, to meet their financial obligations on time, and the stability of companies operating in the country, and their ability to achieve a return and net profits that exceed their average, the bank interest rates on bank deposits of about 5.5%.
The total bank deposits of the banks operating in the UAE increased by Dh300 billion during 2023, recording a growth of 13.5% to exceed Dh2.52 trillion at the end of December 2023, compared to Dh2.22 trillion at the end of December 2022, which reflects the strength of the banking sector in the country and the increasing confidence of customers and investors, residents and non-residents, in the strength of banking and financial institutions and the stability of the monetary policy of the UAE.
As a result of the total developments in the banking and monetary market in the country, total liquidity in the UAE market increased by 16% during the past year to reach Dh2.45 trillion at the end of December 2023, an increase of about Dh338 billion above its level of Dh2.107 trillion at the end of December 2022.
On the other hand, the monetary base in the UAE increased by Dh146.6 billion during the past year by 28.6% to reach Dh658.8 billion at the end of December 2023, compared to Dh512 billion at the end of December 2022.