Connect with us

Hi, what are you looking for?

special

UAE banks’ investments grow by 24.6% year-on-year

UAE banks' investments

UAE banks’ investments grew by 24.6% year-on-year in the first eight months of 2021.

The Central Bank said that UAE banks’ investments amounted to 542 billion dirhams ($147 billion) in the first eight months of this year.

The investments of banks in the corresponding period of last year amounted to 435.5 billion dirhams.

UAE banks’ investments increased on a monthly basis by about 2%, compared to about 531.8 billion dirhams ($144 billion) in July.

Central Bank statistics indicated that this is the highest rise in the history of UAE banks, which is an indication of the availability of liquidity with the return of economic activity following the decline due to the Coronavirus pandemic repercussions.

Banks’ investments in stocks rose on an annual basis at the end of last August, according to the same source, by 4.7 billion dirhams ($1.28 billion), or 52.8%, to reach 13.6 billion dirhams ($3.7 billion), compared to 8.9 billion dirhams ($2.42 billion) in August 2020.

According to International Monetary Fund data for the month of October, the UAE economy is expected to grow by 2.2% next year.

In a related context, the Central Bank said that the UAE economy is a new stage of recovery, and activity has returned strongly to the business sectors, supported by large cash liquidity.

This indicates a significant increase in the balance of payments surplus and real achievements in domestic production, as of last August, the central bank said.

The foreign assets of the Central Bank increased by 57 billion dirhams, a growth of 16%, while the bank’s investments increased by 187% within a year.

The data also shows an important increase in the financial solvency of customers and companies operating in the country, as their remittances increased by 17.5%, equivalent to 46.9 billion dirhams, to rise to 314.2 billion dirhams during August 2021.

In detail, remittances between banks operating in the country jumped to 454.5 billion dirhams in August 2021, registering a growth of 24.3%, equivalent to an increase of 88.8 billion dirhams, compared to their value in August 2020, which amounted to 365.7 billion dirhams.

The data show that the movement of remittances and funds in general last August recorded an important turn in the levels of economic activity and growth.

The value of transfers between banks increased during the same month by about 47.3 billion dirhams, compared to July 2021, with a growth of 11.6 percent. The activity in remittances was not limited to banks.

The movement of remittances to corporate and individual bank customers in the country, through the official remittance system, recorded an important increase of 17.5%, equivalent to an increase of 46.9 billion dirhams, during August 2021 to reach 314.2 billion dirhams, compared to 267.3 billion dirhams in August 2020.

While the increase was 8.9% in August 2021 compared to July 2021, when it was 288.6 billion dirhams, an increase of 25.6 billion dirhams within a month.