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RIYADH: Foreign assets of the Central Bank of the UAE surpassed 574 billion dirhams ($156.2 billion) in April 2023 for the first time in its history, according to data released by the institution on Tuesday.
The CBUAE’s foreign assets increased 27 percent to 574.18 billion dirhams in April, compared to 452.18 billion dirhams in the same month last year.
It also recorded a monthly increase of 6.85 percent against the 537.39 billion dirhams achieved in March.
According to the CBUAE, current account balances and deposits with banks abroad reached 366.5 billion dirhams in April, a monthly increase of 7.8 percent.
These current account balances and deposits were up 19 percent compared to 264.1 billion dirhams in April 2022.
Furthermore, the CBUAE’s balance sheet grew by 6.3 percent on a monthly basis to reach 631.63 billion dirhams at the end of April 2023, marking the largest level ever.
The CBUAE said its balance sheet also increased year on year by 24 percent against 509.81 billion dirhams at the end of April 2022.
Reflecting the strong fundamentals in the country, the bank expected the real gross domestic product of the UAE to expand by 4.3 percent in 2024, with the non-oil sector growing by 4.6 percent and the oil sector by about 3.5 percent.
The CBUAE also said that the country’s economy continued to grow at a robust pace during the first quarter of this year, supported by the strong performance of the non-oil sector.
It expects the UAE’s GDP to grow by 3.3 percent in 2023.
Abu Dhabi’s TAQA plans to acquire water company for $463m
Abu Dhabi National Energy Co., also known as TAQA, announced its plans to buy Sustainable Water Solutions Holding Co. for 1.7 billion dirhams on Wednesday.
SWS Holding, a newly established company announced in May, took ownership of Abu Dhabi Sustainable Water Solutions Co., the entity behind wastewater collection, treatment and reuse in the emirate.
TAQA said in a bourse filing that the transaction would generate significant synergies, creating value for its shareholders.
ADSWS has a network of sewer pipelines extending to over 12,000 km and has a sewage treatment capacity of approximately 1.3 million cubic meters per day through its 37 treatment plants.
In addition, it holds a 60 percent stake in two companies that own four plants in the emirate.
CYVN Holdings to invest $740m in China’s Nio
CYVN Holdings, a firm backed by the Abu Dhabi government, will invest about $738.5 million in Nio, the Chinese electric vehicle maker said on Tuesday.
Nio and peers Xpeng and Li Auto are competing to grab a larger EV share in the world’s largest automotive market dominated by fellow Chinese firm BYD.
Under the deal, Nio will issue about 85 million new Class A shares priced at $8.72 each to CYVN Holdings.
The news sent Nio’s US-listed shares down about 1 percent to $9.30.
CYVN has also entered into a deal with an affiliate of Tencent Holdings, under which it will pick up some shares of Nio.
Upon closing both deals, CYVN will own a 7 percent stake in Nio, the EV maker said, adding that the holding will entitle the investment firm to nominate one director to Nio’s board.
Nio said it would pursue global business opportunities jointly with CYVN following the closing of the investment deal.
(With input from Reuters)