The total capital and reserves of banks operating in the country increased on an annual basis by about 48 billion dirhams, or 11.8%, to reach 454.9 billion dirhams at the end of last July, compared to about 406.9 billion dirhams at the end of July 2022.
The Central Bank stated, in its monthly report, that the total capital and reserves of banks increased during the first seven months of this year by about 6.14%, or the equivalent of 26.3 billion dirhams, compared to 428.6 billion dirhams at the end of December last year, while it grew on a monthly basis by 1.6% compared to 447.8 billion dirhams. One billion dirhams last June.
The Central Bank explained that banks’ capital and reserves do not include loans and secondary deposits, but they do include profits for the current year.
According to the Central Bank, national banks acquired about 86.4% of the total capital and reserves of banks operating in the country, with their value reaching 392.9 billion dirhams at the end of last July, an increase on an annual basis of 12% compared to about 350.8 billion dirhams in July 2022.
The share of foreign banks reached 13.6% of the total capital and reserves of banks operating in the country, with their value reaching 62 billion dirhams at the end of last June, an increase on an annual basis of about 10.5% compared to about 56.1 billion dirhams in July 2022.
The Central Bank indicated that the capital and reserves of banks in the Emirate of Dubai reached 219.8 billion dirhams at the end of last July, with an annual growth of 12.9%, while the capital and reserves of banks in the Emirate of Abu Dhabi reached about 200.2 billion dirhams, an annual increase of 10.8%, and the capital and reserves of banks in the other emirates reached about 34.9 billion dirhams, an annual increase of 10.4%. The capital and reserves of conventional banks in the country amounted to about 380.8 billion dirhams at the end of last July, an increase on an annual basis of 12%, while the capital and reserves of Islamic banks amounted to about 74.1 billion dirhams, an increase on an annual basis of about 10.8%.
Arab countries account for 60% of the Islamic financial industry globally
The Director General and Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Abdul Rahman bin Abdullah Al-Humaidi, said, “Arab countries account for about 60% of the size of the global Islamic financial industry, which amounts to three trillion dollars by the end of 2021.”
Al-Humaidi added, at the opening of a remote course on “Accounting Standards for Islamic Financial Institutions” in cooperation with the Islamic Development Bank, that building the capabilities of workers in this industry and the capabilities of the regulatory and supervisory authorities is a crucial element in continuing the momentum of this industry, and its growth and development.
He pointed out that setting accounting standards for Islamic finance institutions helps support the growth of the industry, achieves calibration and harmony between Islamic financial practices among Arab countries, or between practices in Arab countries and international practices, and also leads to the transparency of accounting disclosure, the reliability and credibility of financial statements, and facilitates the work of institutions. Islamic Finance in view of the challenges it faces in applying international accounting standards due to the specificity of its work.
2023-09-25 19:00:00
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