The banking industry in the United Arab Emirates has reached a noteworthy milestone. For the first time, as of July 2024, the total capital and reserves of banks doing business in the United Arab Emirates surpassed Dhs500 billion.
The Central Bank of the UAE (CBUAE) recently revealed that the sector’s capital and reserves increased by 10.5% year over year, from Dhs454.9 billion in July 2023 to Dhs502.6 billion in July 2024. Additionally, the sector’s capital and reserves saw a significant boost from Dhs489.3 billion at the end of 2023 to Dhs13.3 billion during the first seven months of 2024.
The apex bank claims that these numbers reflect current year profits but do not include subordinated borrowings or deposits. The majority, or 86.3%, of the total capital and reserves are held by national banks, which will have grown by 10.4% annually to Dhs433.7 billion by July 2024.
Foreign banks also played an important role, contributing 13.7% of the total capital and reserves by the end of July, or Dhs68.9 billion, an increase of 11.1% from the previous year.
This outstanding accomplishment demonstrates the durability and power of the UAE banking industry, reaffirming its role as a major force behind the country’s stability and economic prosperity.
