UAE Banking Sector Records AED 25 Billion Increase In Savings Deposits

The United Arab Emirates' banking sector has witnessed a notable increase in savings deposits, as reported by the Central Bank of the UAE (CBUAE). By the end of January 2024, savings deposits, excluding those between banks, surged by approximately AED25 billion, reaching a total of AED270.48 billion. This marks a significant annual growth of 10.2 percent from AED245.54 billion recorded in January 2023. The majority of these savings deposits were held in the local currency, the dirham, which accounted for 82 percent or AED222.01 billion of the total, while foreign currencies represented 18 percent or AED48.4 billion.

The trend of increasing savings deposits is not new, with figures steadily climbing from AED152 billion at the end of 2018 to AED245.8 billion in 2022. This consistent growth underscores the robustness and attractiveness of the UAE's banking sector for savers.

Furthermore, demand deposits have also shown impressive growth, reaching AED1.001 trillion at the end of January 2024. This represents an annual increase of 9.5 percent from AED914.74 billion in January 2023, an addition of AED86.6 billion. The composition of demand deposits saw the dirham making up 72 percent or AED720.55 billion, while foreign currencies accounted for 28 percent or approximately AED280.8 billion.

Similar to savings and demand deposits, time deposits have experienced substantial growth. By January 2024, time deposits in the UAE banking sector amounted to AED796.9 billion, marking a remarkable 30.3 percent increase from about AED611.69 billion in January 2023. The dirham constituted the larger share of time deposits at 60 percent or AED474.88 billion, with foreign currencies making up the remaining 40 percent or AED322.04 billion.

This data from the CBUAE highlights not only the growing confidence in the UAE's banking sector but also indicates a healthy and expanding economy where both individuals and businesses are increasingly willing to save and invest through local financial institutions.

With inputs from WAM