The total assets of the banking sector in the UAE exceeded 4.1 trillion dirhams ($1.11 trillion) by the end of January, marking the first time in its history, according to the latest statistics from the UAE Central Bank. The bank revealed in its monetary and banking developments report for January 2024 that total banking assets, including bank acceptance certificates, increased by 0.8 percent on a monthly basis, reaching 4.11 trillion dirhams at the end of January, compared to approximately 4.08 trillion dirhams in December 2023.
The Central Bank noted that total banking credit rose by 0.2 percent from 1.992 trillion dirhams at the end of December to 1.996 trillion dirhams at the end of January 2024, driven by a 1.9 percent increase in foreign credit. Credit to the private sector increased by 0.5 percent.
According to the UAE Central Bank report, total bank deposits saw a rise of 0.7 percent from 2.52 trillion dirhams at the end of December 2023 to 2.54 trillion dirhams at the end of January 2024. This was attributed to a 0.9 percent increase in resident deposits, a 4.7 percent increase in government sector deposits, a 1 percent increase in public sector deposits, and approximately a 1 percent increase in private sector deposits.
The monetary base expanded by 1.8 percent from 658.8 billion dirhams at the end of December 2023 to 671 billion dirhams at the end of January, alongside a 12.8 percent increase in cash collateral certificates and Islamic deposit certificates, while the issued currency decreased by 0.4 percent, reserve accounts by 1.4 percent, and current accounts and overnight deposits for banks and other financial institutions at the central bank dropped by 9.5 percent.
