The Banking Sector in UAE Achieves Record Growth in Q1 2023

The banking sector in the country continued its growth momentum during the first quarter of this year 2023, with record levels in terms of the growth of assets, credit, deposits and investments, supported by the strength and durability of the national economy.

According to the statistics and data of the UAE Central Bank, the total assets of the banking sector rose to record levels, in addition to the growth of bank credit and deposits of residents and non-residents, while the total foreign assets of the Central Bank exceeded the barrier of 537 billion dirhams, for the first time in its history. The investments of banks operating in the country exceeded the barrier of 548 billion dirhams, and the value of transfers carried out in the banking sector in the country, through the UAE system for financial transfers, increased to more than 3.89 trillion dirhams during the first quarter of this year.

The Central Bank of the Emirates said in the first quarter report on monetary and banking developments that the total assets of banks operating in the country on a quarterly basis increased by 2.6% to reach 3.765 trillion dirhams in the first quarter of this year, while it increased on an annual basis by 12.8%. Total bank credit increased on a quarterly basis by 0.9% to reach 1.896 trillion dirhams at the end of the first quarter of this year, while it increased on an annual basis by 3.5%.

The total deposits of resident and non-resident customers with banks operating in the country rose on a quarterly basis by 3.8%, and on an annual basis by 14.9%, to reach 2.306 trillion dirhams at the end of last March.

Resident deposits increased on a quarterly basis by 4.1% to 2.092 trillion dirhams at the end of the first quarter of this year, while non-resident deposits increased on a quarterly basis by 0.4% to 213.4 billion dirhams.

In turn, the total foreign assets of the Central Bank increased on a quarterly basis by 8.8%, to 537.4 billion dirhams at the end of the first quarter of this year.