According to the Central Bank of the UAE (CBUAE), the gross assets of Sharia-compliant banks operating in the UAE reached AED 650B ($177B) by the end of the first quarter of 2023. This represents a 7.31% annual increase of approximately AED 44.3B compared to March 2022, when the assets stood at around AED 605.7B.
The CBUAE serves as the governing body for overseeing and regulating the banking and insurance industry. It actively fosters stability, efficiency, and resilience in the financial system while safeguarding consumer interests. Through effective supervision, it supports economic growth, ultimately benefiting the UAE and its people.
The CBUAE’s data also indicates that Islamic banks’ credit rose to AED 400.2B by the end of March 2023, showing a 2.51% annual growth compared to AED 390.4B in March 2022. Additionally, there was a month-on-month increase of 0.91% from AED 396.6B in February.
In terms of deposits, Islamic banks’ figures showed an increase to AED 453.4B in March 2023, marking a 6.2% annual growth from nearly AED 427B in March 2022.
The statistics provided by the CBUAE also revealed that the total investments of Islamic banks reached AED 111.5B by the end of March 2022, according to WAM.
On the other hand, conventional banks based in the UAE recorded total assets of AED3.115 trillion during the reference period, representing a 14.1% increase from AED 2.73T in March 2022.
By the end of March 2023, conventional banks accounted for approximately 82.7% of the total assets in the UAE’s banking sector, amounting to AED 3.765T. Islamic lenders, meanwhile, held 17.3% of the total assets.
Savings and Investment
In the meantime, the central bank announced that savings deposits in the banking sector experienced a significant increase. Specifically, there was a month-over-month surge of 7.4%, equivalent to Dhs18.1bn, resulting in a total of Dhs263bn in March, excluding interbank deposits.
Compared to March 2022, savings deposits in the UAE banking sector witnessed an annual growth of 4.7% or Dhs11.8bn, reaching a total of Dhs251.3bn.
Furthermore, the CBUAE reported in June that bank investments reached a historic milestone, reaching a record high of Dhs549bn by the end of March. This achievement represents the highest level ever recorded in the country’s history.
