The total assets of the banking sector in the country exceeded 4.2 trillion dirhams by the end of February, for the first time in its history, according to the latest statistics from the UAE Central Bank. In its report on monetary and banking developments for February 2024, the Central Bank revealed that total banking assets, including acceptance certificates, rose annually by approximately 450.2 billion dirhams, with a growth rate exceeding 12% compared to about 3.748 trillion dirhams in February 2023.
The report indicated that total banking assets increased monthly by 2.2%, reaching 4.198 trillion dirhams by the end of February, compared to approximately 4.109 trillion dirhams in January. The Central Bank noted that total bank credit rose by 0.9% from 1.996 trillion dirhams at the end of January to 2.014 trillion dirhams at the end of February 2024, due to a 1.1% increase in local credit. This increase in local credit was attributed to growth rates of 5.5%, 0.2%, 0.6%, and 1.7% in the credit granted to the government sector, public sector/government-related entities, the private sector, and non-banking financial institutions, respectively.
Total bank deposits recorded an increase of 2.7%, from 2.540 trillion dirhams at the end of January to 2.608 trillion dirhams by the end of February, due to a rise in resident deposits by 2.5% and non-resident deposits by 5%. The Central Bank attributed the growth in resident deposits to an 18.4% increase in public sector deposits and a 2% increase in private sector deposits.
The monetary base expanded by 2.7%, from 670.9 billion dirhams at the end of January to 688.7 billion dirhams at the end of February 2024, due to a 3.1% increase in issued currency, a 1.2% increase in reserve accounts, and a 6.7% increase in Islamic certificates and bills, outweighing a 4% decrease in current accounts of banks and other financial institutions and overnight deposits.
