UAE Banking Sector Achieves Record AED 17 Trillion Transactions In 2023

The UAE banking sector witnessed a significant surge in transactions through the UAE Fund Transfer System (UAEFTS), with the total value exceeding AED17 trillion in 2023. This figure represents a substantial 35 percent increase from the previous year, where transactions amounted to AED12.708 trillion. The Central Bank of the UAE (CBUAE) released these figures, highlighting the growing activity within the nation's financial system.

Breaking down the transactions, AED11.018 trillion were attributed to interbank transfers, while transfers between bank customers accounted for AED6.14 trillion. The monthly distribution of these transactions shows a consistent flow of funds throughout the year, with December witnessing the highest volume at AED1.7 trillion.

The UAEFTS, a pivotal system developed by the CBUAE and operational since August 2001, ensures instant fund transfers between participating entities, underscoring its critical role in the banking sector's infrastructure.

Aside from fund transfers, the banking operations statistics also shed light on cheque clearances and cash transactions. The Image Cheque Clearing System (ICCS) processed cheques worth AED1.263 trillion across 22.1 million cheques in 2023. This system plays a vital role in facilitating cheque-based transactions efficiently.

When it comes to cash handling, deposits at the Central Bank reached AED170.14 billion, with nearly all of it in paper currency and a minor portion in coins. Conversely, cash withdrawals from the Central Bank were slightly higher at AED183.6 billion, indicating a robust demand for physical currency among consumers and businesses alike.

The detailed statistics provided by the CBUAE not only highlight the robustness of the UAE's banking operations but also reflect the economy's dynamic nature and its capacity to handle substantial financial transactions smoothly.

With inputs from WAM