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UAE bank investments hit a record $149.3bn in March

Month over month, bank investments jumped 1.3 per cent from Dhs541.4bn in February

by Gulf Business

June 10, 2023

Image credit: WAM

The Central Bank of the UAE (CBUAE) said bank investments hit a record high of $149.3bn (Dhs549bn) by the end of March, the highest level in the country’s history.

The central bank’s report revealed that bank investments soared by 16 per cent year-on-year (YoY) compared to Dhs473bn in March 2022. Month over month, bank investments jumped 1.3 per cent from Dhs541.4 bn in February.

Securities accounted for the majority of bank investments, around 45.6 per cent or Dhs250.1bn during the period under review.

UAE Fund Transfer System processed transactions worth AED 3.89 trillion in Q1 2023#WamNews https://t.co/ciXdbM7ofj pic.twitter.com/gk6HnunK3E

— WAM English (@WAMNEWS_ENG) June 8, 2023

Held-to-maturity securities accounted for 43 per cent of the total investments to reach Dhs236.3bn in March, a YoY increase of 74.1 per cent compared to Dhs135.7bn in March 2022. Monthly, held-to-maturity securities surged by 2.6 per cent Dhs230.3bn in February 2023.

The bank stock investments reached Dhs11.9bn in March, an 0.8 per cent increase from around Dhs11.8bn in December 2022.

UAE bank credit financing

Meanwhile, CBUAE said credit financing provided by national banks to the trade and industry sectors surged by 6.1 per cent YoY, equivalence to Dhs42.5bn in the first three months of 2023.

The latest data from the central bank shows that the cumulative balance of credit provided by national banks to the two sectors amounted to Dhs735.2bn at the end of March compared to some Dhs692.7bn in the corresponding period a year earlier.

The apex lender said the cumulative balance of credit provided by national banks to the two sectors increased monthly by 0.1 per cent or Dhs500m from Dhs734.7bn in February.

Financing provided by Emirati banks accounted for 90.1 per cent of the total credit granted to the two sectors, which stood at Dhs815.9bn by the end of March, with foreign banks based in the UAE accounting for 9.9 per cent or Dhs80.7bn.

The credit financing for the two sectors in Abu Dhabi reached Dhs673.6 bn or 82.6 per cent by the end of January, with Islamic banks comprising 17.4 per cent or Dhs142.3bn. Sharia-compliant lenders provided Dhs384.7bn in Dubai and Dhs100.6bn in other emirates.