UAE central bank’s balance sheet surges 30.4%

The bank’s balance sheet maintained a steady 21.2 percent growth rate in the first 11 months of 2023. Shutterstock
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RIYADH: The Central Bank of the UAE’s balance sheet surged 30.4 percent year-on-year, hitting 669.72 billion dirhams ($182 billion) in November 2023, signaling enhanced financial strength.   

According to a new report issued by the financial institution, the bank’s balance sheet maintained a steady 21.2 percent growth rate in the first 11 months of 2023. This resulted in an added 117.2 billion dirhams, compared to 552.55 billion dirhams in December 2022.   

This upward trend signifies a substantial boost in the country’s financial strength, reinforcing the UAE’s robust position and diversified asset portfolio. 

The report highlighted that the growth in the asset side is primarily attributed to cash and bank balances, the major component totaling 323.69.  

Additionally, investments and deposits also played substantial roles, amounting to 207.98 billion dirhams and 97.46 billion dirhams, respectively. 

Meanwhile, loans and advances have shown healthy progress, reaching 2.11 billion dirhams. Other assets are valued at 38.48 billion dirhams.  

On the liability and capital side, growth is attributed to current and deposit accounts, holding the leading position at 292.64 billion dirhams. 

The issuance of monetary licenses and Islamic deposit certificates accounted for 213.06 billion dirhams, while issued banknotes and coins stand at 133.82 billion dirhams.  

Moreover, the report emphasized the strong standing of capital and reserves at 15.45 billion dirhams, with other liabilities capturing a relatively smaller share at 14.75 billion dirhams. 

Meanwhile, the UAE banking sector’s total assets surged to 4.02 trillion dirhams for the first time in history in November 2023, the central bank data showed.  

This represents a 0.8 percent increase compared to the preceding month, with the figure standing at 3.99 trillion dirhams.  

Additionally, total bank credit at the end of November rose by 1 percent, reaching 1.99 trillion dirhams, with domestic and foreign credit showing growth of 0.8 percent and 2.8 percent, respectively. 

The central bank attributed the growth in domestic credit to a 5 percent, 2 percent, and 6 percent rise in credit to the public sector, private entities, and non-banking financial institutions, respectively.