Banks’ investments in monetary bills and Islamic certificates of deposit (CDs) reached AED 226.9B by the end of Q2 2024, a 10.3% increase from AED 205.7B at the same time last year, according to the Central Bank of the UAE (CBUAE). Investments in Shariah-compliant CDs stood at AED 43.9B by the end of Q2 2024.
The CBUAE’s foreign assets rose by 5.3% quarter-on-quarter, reaching AED 770.6B. This growth was driven by a 9.1% increase in current account balances and deposits with foreign banks (up AED 44.6B) and a 1.0% rise in other foreign assets (up AED 0.6B), offsetting a 3.3% decline in foreign investments (down AED 6.1B). Year-on-year, foreign assets surged by 30.1%.
The total capital and reserves of UAE banks increased by 3.9% to AED 495.2B by the end of Q2 2024. The capital adequacy ratio was 18.3%, exceeding the required 13% which includes a 2.5% capital conservation buffer and an 8.5% Tier 1 ratio, as per Basel III guidelines.
By the end of Q2 2024, the number of locally incorporated banks remained at 23, with 482 branches. The number of electronic banking service units and cash offices stayed the same at 46 units and 21 offices, respectively. GCC banks remained steady at six, plus one wholesale GCC bank, with branches also unchanged at six. Other foreign banks numbered 21 with 72 branches. Licensed financial institutions included 11 wholesale banks, 70 representative offices, 17 finance companies, and 76 money changers. The number of ATMs decreased by 10 to 4,659.
