The UAE banking sector has shown growth in the past year and is poised for further expansion in 2024. This success is attributed to the Central Bank of the UAE’s (CBUAE) successful strategy, which has put in place the necessary structures and regulations to ensure the sector’s sustainable growth. The bank aims to support economic and financial stability in the UAE. This is reported by
Emirates News Agency (WAM).

Last year, CBUAE was able to maintain a stable and efficient banking and financial system by providing effective services. The bank achieved record growth in assets, loans, deposits and investments. In addition, strong capital, provisioning and reserve efficiencies were maintained to meet high standards of governance, transparency and risk management.

According to the fourth quarter 2023 report published by CBUAE on the state of the monetary, banking and financial markets, loans increased by 0,5 per cent quarter-on-quarter to reach AED1,992 trillion (US$518 billion) by the end of December 2023. Annualised loan volume growth stood at 6 per cent. Total deposits of resident and non-resident customers with UAE banks increased by 4,2 per cent (quarter-on-quarter) and 13,5 per cent (annualised growth) to AED2,522 trillion (US$680,7 billion)

The UAE Central Bank’s foreign assets increased by 16,7 per cent quarter-on-quarter by the end of the fourth quarter of 2023. This growth was driven by a 27 per cent increase in current account balances and deposits with banks abroad and a 10,6 per cent increase in foreign securities.

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