Bank Investments In Monetary Bills And Islamic Certificates Of Deposit Hit AED 226.9 Billion By End Of Q2 2024

Banks in the UAE saw their investments in monetary bills and Islamic certificates of deposit rise to AED226.9 billion by the close of Q2 2024. This marks a 10.3% increase from AED205.7 billion at the same time in 2023, as reported by the Central Bank of the UAE (CBUAE). The growth reflects a robust financial environment.

The CBUAE's data indicates that banks' investments in Shariah-compliant certificates of deposit reached AED43.9 billion by the end of Q2 2024. Additionally, the Central Bank's foreign assets grew by 5.3% quarter-on-quarter, reaching AED770.6 billion during this period. This growth was primarily due to a 9.1% increase in current account balances and deposits with overseas banks, amounting to an additional AED44.6 billion.

Banks operating within the UAE increased their total capital and reserves by 3.9%, reaching AED495.2 billion at the end of Q2 2024. The capital adequacy ratio stood at 18.3%, comfortably surpassing the required minimum of 13%. This includes a capital conservation buffer requirement of 2.5% and a Tier 1 ratio of 8.5%, as per Basel III guidelines set by the Central Bank.

Bank Branches and Electronic Services

By June 2024, there were still 23 locally incorporated banks, excluding investment banks, operating in the UAE. However, their branch numbers fell to 482 by the end of June 2024. The number of electronic banking service units remained stable at 46 units, while cash offices stayed constant at 21.

The number of GCC banks operating in the UAE remained unchanged at six banks plus one wholesale GCC bank by Q2 2024's end. These banks maintained six branches collectively as of June's end. Other foreign banks numbered at 21 with a total of 72 branches, while electronic banking service units held steady at 21 units.

Financial Institutions and ATM Numbers

The CBUAE reported that licensed financial institutions included Wholesale Banks, Representative Offices, Finance Companies, and Money Changers numbering at 11, 70, 17, and 76 respectively by Q2's conclusion in 2024. Meanwhile, ATMs across UAE banks decreased by ten units to total at 4,659 ATMs.

The Central Bank's foreign assets saw a year-on-year increase of 30.1% by June-end in 2024 despite a quarterly decline in foreign investments by AED6.1 billion or a decrease of about 3.3%. This decline was offset by other gains within foreign assets categories.

Overall, these statistics reflect stability within UAE's banking sector amidst fluctuating global economic conditions while maintaining strong capital reserves and expanding Shariah-compliant investment portfolios for sustainable growth moving forward.

With inputs from WAM