Data from the UAE Central Bank indicate that the banking sector continues to play a vital role in supporting the country’s economic development process. Bank investments in the UAE reached new record levels at the end of December 2023, reaching 634.4 billion dirhams, achieving annual growth of 20.3%, according to data issued by Central Bank of the Emirates.
This increase is the highest in history UAE banking sector It reflects the strong performance of the national economy and the growing confidence in the business environment. In terms of deposits, deposits of UAE residents increased by 15.5% on an annual basis, reaching 2.320 trillion dirhams.
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Although the value of loans to the private sector declined by 1.3% on a monthly basis, it increased by 5.8% on an annual basis, reaching 1.24 trillion dirhams.
Private sector loans in the UAE grew by 5.8%
The value of loans provided by banks operating in the Emirates to the private sector witnessed remarkable growth by the end of December 2023, rising by 5.8% on an annual basis, equivalent to 67.7 billion dirhams.
According to data from the UAE Central Bank, the value of these loans reached 1.24 trillion dirhams at the end of last year, compared to 1.17 trillion dirhams at the end of 2022.
Despite the monthly decline in the value of loans by 1.3%, equivalent to 16.8 billion dirhams, compared to 1.25 trillion dirhams at the end of last November, the significant annual growth indicates the banking sector’s continued support for economic activity in the country.
In terms of loan distribution, the commercial and industrial sector accounted for the largest share of the total loans, amounting to 822.7 billion dirhams, an increase of 24.5 billion dirhams in 2023, i.e. a growth of 3.1%. Individuals obtained 421 billion dirhams of loans, a growth of 11.5% year-on-year, meaning an increase of 43.2 billion dirhams in 2023. While non-bank financial institutions obtained 12.4 billion dirhams of these loans.
As for public sector loans, they increased by 15.5% on an annual basis, equivalent to 39.3 billion dirhams, from 253.3 billion dirhams in December 2022 to 292.6 billion dirhams in the same month of 2023.
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