UAE Banks' Capital And Reserves Surge To AED 481.5 Billion By End Of November 2023

The financial landscape of the United Arab Emirates (UAE) has witnessed a significant uplift, with the aggregate capital and reserves of banks operating within the nation marking a notable increase. As per the latest statistics released by the Central Bank of the UAE (CBUAE), there has been a 13.3 percent rise in the aggregate capital and reserves, reaching AED481.5 billion by the end of November 2023, up from AED424.9 billion at the conclusion of the same period in 2022.

This growth is not just an annual comparison but also reflects a substantial increase within the first 11 months of 2023. Specifically, there was a 12.3 percent or AED52.9 billion increase compared to AED428.6 billion at the end of December 2022. On a month-to-month basis, this figure grew by 2.5 percent from AED469.9 billion in October 2023.

The contribution to this growth comes predominantly from national banks, which accounted for 86.5 percent of the total aggregate capital and reserves of UAE-based banks, amounting to AED416.5 billion at the end of November 2023. This represents a year-on-year increase of 13.6 percent. On the other hand, foreign banks contributed to 13.5 percent of the total, with their share amounting to AED65 billion at the end of November 2023, marking an 11.9 percent growth from the previous year.

A closer look at the regional distribution reveals that banks operating in Dubai experienced a year-on-year growth of 14.9 percent in their aggregate capital and reserves, reaching AED233.2 billion by the end of November 2023. Abu Dhabi-based banks also saw a healthy increase, with their aggregate capital and reserves reaching AED210 billion, up by 10.6 percent from the previous year. Banks operating in other emirates were not left behind, recording a 19.3 percent year-on-year growth with their aggregate capital and reserves settling at AED38.3 billion.

This financial growth underscores the robustness and resilience of the UAE's banking sector amidst global economic fluctuations. The substantial increases across both national and foreign banks highlight a thriving financial ecosystem within the country, contributing significantly to its economic stability and attractiveness as a global business hub.

The CBUAE's monthly report serves as a testament to the ongoing efforts and strategies implemented by UAE-based banks to bolster their financial health and operational efficiency. As these institutions continue to navigate through dynamic market conditions, their ability to maintain such positive growth trajectories plays a crucial role in reinforcing the UAE's position as a leading financial center in the Middle East.

With inputs from WAM