Today's Edition
YOUSEF BUSTANJI (ABU DHABI)
The total net foreign reserves of the UAE banking sector (banks and the central bank) increased by Dh286 billion, representing a growth of 33.1%, to reach Dh1.147 trillion by the end of December 2023, compared to Dh861 billion by the end of December 2022, according to data released by the Central Bank yesterday.
The increase was due to a rise in the net foreign reserves of the Central Bank of the UAE by Dh196.5 billion, a growth of 41.2%, to reach Dh673.4 billion in 2023, compared to Dh476.9 billion at the end of 2022. The net foreign reserves of banks operating in the country also increased by Dh89.3 billion, representing a growth of 23.2%, to reach Dh473.4 billion by the end of December 2023, compared to Dh384.1 billion by the end of December 2022.
Economic Competitiveness
The significant increase in the net foreign reserves of the banking sector indicates a clear improvement in the UAE economy’s competitive capabilities in its relations with foreign markets, in terms of increasing foreign direct investment flows into the country, increasing the attractiveness of tourism and travel, and growing national exports and increasing financial transfers to the local market, among other resources and transactions that support and increase the flow of foreign currency into the national economy.
Gold Reserves
The Central Bank of the UAE’s gold reserve balance increased by about Dh2.1 billion, a growth of 13%, to reach Dh18.15 billion during 2023, compared to Dh16.04 billion at the end of 2022.
Cash and balances due to the central bank from other banks also increased by about Dh92 billion, a growth of 33%, to reach Dh371 billion by the end of last year, compared to Dh279 billion at the end of 2022.
The balance of deposits also increased by Dh37.6 billion to reach Dh101 billion by the end of 2023, a growth of 59%, compared to Dh63.4 billion at the end of 2022.
The balance of foreign securities, in which the central bank invests part of its assets, increased by Dh52.7 billion, a growth of 39.1%, to reach Dh187.1 billion by the end of December, compared to Dh134.5 billion at the end of December 2022.
Increase in Employees
Statistical data issued by the Central Bank of the UAE showed that banks operating in the UAE increased their number of employees by about 2,343 new employees in 2023, a growth rate of 6.5%, to reach 38,173 employees by the end of December, compared to 35,830 employees at the end of 2022. The increase in the number of employees is supported by the expansion of banks in their businesses and activities, despite the increasing reliance on digital and electronic services.
Private Sector
On the other hand, banks operating in the UAE provided Dh75.4 billion in new loans to the resident private sector in the UAE during 2023, bringing the balance of local credit granted to the private sector to Dh1.261 trillion by the end of December 2023, a growth of 6.4% compared to its balance of Dh1.186 trillion at the end of 2022.
