The UAE’s banking sector has achieved a major milestone, with capital and reserves reaching AED500 billion ($136.1 billion) as of July 2024. This accomplishment marks a significant year-on-year increase of over 10%, a testament to the sector’s stability and growth amid evolving market conditions. The recent data from the Central Bank of the UAE points to strong, sustained capital growth, further enhancing the UAE’s position as a financial hub in the region.
As of July 2024, the capital and reserves of banks operating within the UAE surpassed AED500 billion for the first time, recording an annual growth rate of 10.5%. This increase represents a climb from AED454.9 billion ($123.8 billion) in July 2023 to AED502.6 billion ($136.8 billion) in July 2024, reflecting the robustness of the country’s financial infrastructure.
The sector witnessed a substantial addition of AED13.3 billion ($3.6 billion) during the first seven months of 2024 alone, with reserves growing from AED489.3 billion ($133.2 billion) at the close of 2023. This growth underscores the UAE banking industry’s ability to build capital at a steady pace, buoyed by prudent financial management and favorable market conditions.
The Central Bank of the UAE clarified that these figures represent core capital and reserves, excluding subordinated borrowings and deposits while accounting for profits accrued within the current year. National banks contributed the largest share, making up 86.3% of the total reserves, which reached AED433.7 billion ($118.8 billion) as of July 2024. This represents a year-on-year growth of 10.4%, showcasing the dominance of domestic banks within the sector.
Foreign banks have also made significant contributions to the UAE’s financial landscape, accounting for 13.7% of the total capital and reserves. By July 2024, foreign banks amassed AED68.9 billion ($18.7 billion), marking an 11.1% growth from the previous year. This increase highlights the integral role foreign institutions play within the UAE’s financial ecosystem.
Central Bank representatives noted that this milestone reaffirms the strength and resilience of the UAE’s banking sector, a cornerstone of the nation’s economy. “This remarkable achievement highlights the strength and resilience of the UAE’s banking sector, solidifying its position as a key driver of the nation’s economic growth and stability,” they stated.
With ongoing development and substantial reserves, UAE banks continue to support the nation’s economic objectives, offering financial security and fostering investor confidence. This record growth not only reflects the sector’s solid foundation but also positions UAE banks as key players in regional financial growth and stability.
