The UAE banking sector reported a significant increase in investments at the start of 2025, with total bank investments reaching AED742.9 billion (approximately $202 billion) by the end of January. According to the Central Bank of the UAE’s (CBUAE) latest banking indicators, this represents a 16.1% increase compared to January 2024 and a 1% rise from the previous month, equal to AED7.3 billion.
Investments See 16.1% Annual Growth Amid Broader Banking Sector Expansion
The largest investment component was in securities representing debt on others, which surged to AED332.3 billion, marking an impressive 26.1% year-on-year growth. Held-to-maturity bonds followed closely at AED335.7 billion, reflecting a 7.9% annual rise, although they posted a slight 1.1% month-on-month decline.
Meanwhile, equity investments settled at AED19.1 billion, recording a 19.4% increase year-on-year, despite a 1.5% dip from December. Other investments rose to AED55.8 billion, showing 13.2% annual and 2.2% monthly growth.
These investment trends align with the continued growth of the UAE’s banking sector. Total credit in the market reached AED2.186 trillion, up 9.5% annually, while total deposits surged past AED2.84 trillion following an 11.8% year-on-year increase.
The UAE’s banking assets also expanded, exceeding AED4.562 trillion by January’s end, representing an 11% annual and 0.1% monthly rise.
UAEFTS and Cheque Transactions Reflect Robust Financial Activity
The Central Bank also highlighted strong performance in transaction volumes. The UAE Funds Transfer System (UAEFTS) handled transfers totaling over AED1.786 trillion in January, an 18% increase year-on-year. Of this, AED1.109 trillion came from interbank transfers, while approximately AED677.64 billion were customer transfers.
Additionally, image-based cheque processing remained active, with 1.956 million cheques clearing AED118.48 billion in value during January.
In terms of physical currency movement, cash withdrawals from the Central Bank amounted to AED19.929 billion, while cash deposits totaled AED15.217 billion.
The overall data points to a buoyant start to 2025 for the UAE banking sector, underscoring its resilience and continued expansion in investments, credit, and transaction volumes.
