UAE Leads Arab Banking Sector With 24.3% Share Of Total Assets As Reported By AMF

The Arab Monetary Fund (AMF) has observed a notable increase in the banking sector's assets across Arab countries. By the end of 2023, these assets reached US$4.574 trillion, up from $4.355 trillion in 2022, indicating a 5 percent rise. This growth underscores the sector's resilience amidst regional and global challenges.

Banks in the UAE hold the largest portion of these assets, accounting for 24.3 percent, with Saudi banks closely following at 23.1 percent. The Gulf Cooperation Council (GCC) banking sector is expected to comprise 73.1 percent of total assets by the end of 2023.

The AMF's Financial Stability Report attributes this asset growth to increased banking activities in the UAE, Saudi Arabia, and Qatar. These three countries collectively account for 58.9 percent of the total assets within the Arab banking sector.

The UAE and Saudi Arabia led in asset growth rates within the Arab banking sector last year compared to 2022. The UAE saw an 11 percent increase due to expanded credit and investments, while Saudi Arabia experienced a 9.3 percent rise driven by real estate loans and credit growth in various sectors.

This expansion reflects strong customer and market confidence in the Arab banking sector's stability and performance despite ongoing instability globally and regionally.

Real estate loans in Saudi Arabia grew by 11.5 percent, contributing significantly to its overall asset growth rate. This trend highlights a robust demand for real estate financing within the country.

The report emphasises that such growth demonstrates the sector's ability to adapt and thrive even under challenging circumstances, reinforcing its vital role in regional economic stability.

With inputs from WAM