UAE Banking Sector Sees AED 33.3 Billion Surge In New Savings Deposits Over 12 Months, Marking 14% Growth
Savings deposits in the UAE’s banking sector, excluding interbank deposits, attracted around AED33.3 billion to reach AED278.37 billion at the end of February 2024, compared to about AED245.01 billion in February 2023, with a year-on-year (YoY) growth of 13.6 percent, according to the latest statistics from the Central Bank of the UAE (CBUAE).
The apex bank’s statistics showed that the local currency, the dirham, accounted for the largest share of savings deposits, about 83 percent or AED230.18 billion, while the share of foreign currencies amounted to 17 percent or AED48.18 billion.
Savings Deposits in banks have been on a consistently upward trajectory in recent years, rising from AED152 billion at the end of 2018 to AED172.2 billion in 2019, and reaching AED215.2 billion in 2020, AED241.8 billion in 2021, and AED245.8 billion in 2022.
Demand Deposits increased to AED1.05 trillion at the end of February 2024, with a YoY growth rate of 14.8 percent compared to AED919.74 billion in February 2023, an increase equivalent to AED136.25 billion.
The Demand Deposits total comprised AED737 billion in the local currency, the dirham, accounting for 70 percent, and around AED318.9 billion in foreign currencies, accounting for 30 percent.
Demand Deposits have also seen steady growth in recent years, rising from AED577.6 billion at the end of 2018 to AED599.6 billion at the end of 2019, AED696.8 billion at the end of 2020, AED848 billion in 2021, and AED907.3 billion in 2022, WAM reported.
According to the Central Bank’s bulletin, Time Deposits reached AED817.1 billion at the end of February 2024, with a 28.2 percent increase YoY compared to about AED637.6 billion in February 2023, an increase of AED179.5 billion.
The local currency, the dirham, accounted for the largest share of time deposits, about 59 percent or AED480.4 billion, while the share of foreign currencies amounted to about 41 percent or AED336.7 billion.
