Investments by banks operating in the UAE reached 635 billion dirhams (approximately 173 billion dollars) at the end of December 2023, marking the highest level in their history, according to the latest statistics from the UAE Central Bank. The Central Bank's statistics, released in the banking indicators report, showed a year-on-year increase of 20.3 percent in the investments of banks operating in the UAE, rising to 634.4 billion dirhams at the end of December 2023, compared to about 527.4 billion dirhams in December 2022.
According to the Central Bank, investments increased by 2.3 percent month-on-month, compared to 620.2 billion dirhams in November, representing an increase of 14.2 billion dirhams in one month. Bonds held to maturity constituted the largest share of bank investments, accounting for about 48 percent with a total of 304.8 billion dirhams at the end of December. This was an increase of 0.8 percent month-on-month and a 45.9 percent increase year-on-year.
The share of banks' investments in debt securities ("debt bonds") reached approximately 41.7 percent of total investments, amounting to 264.9 billion dirhams at the end of December, reflecting a monthly increase of about 3 percent and an annual increase of 2.5 percent.
Investments in stocks totaled 15.8 billion dirhams at the end of December, representing a month-on-month increase of 28.5 percent compared to about 12.3 billion dirhams in November 2023, and a year-on-year increase of about 33.9 percent. According to the Central Bank's statistics, other bank investments reached approximately 48.9 billion dirhams at the end of December, marking a monthly increase of 0.8 percent and an annual increase of about 1.2 percent.
It is noteworthy that banks' investments do not include deposits held at the central bank in the form of certificates of deposit and promissory notes.
