800 Billion Added to Banks’ Asset Portfolio Since 2005
80% Growth in Banking Investments
73% Increase in Total Bank Deposits
1.4 Trillion in New Deposits
According to data from the Central Bank, UAE banks have made significant strides over the past five years in enhancing their financial stability and expanding their market activities, leading to a remarkable 75% increase in their asset portfolio, with nearly 2.3 trillion dirhams added from the end of 2020 to the end of last year.
New Investments
During this period, there has been a consistent annual increase in new investments, with banks adding around 800 billion to their asset portfolios last year, marking an 18% year-on-year growth. In 2024, approximately half a trillion dirhams were added to the portfolio, while about 450 billion dirhams were recorded in 2023. The investment growth reached 400 billion dirhams in 2022 and nearly 150 billion dirhams in 2021.
Banks’ investments increased by 80% over this timeframe, with a total addition of 375 billion dirhams to their investment portfolios over five years. This growth was heavily influenced by an increase in bond investments, which jumped by 257 billion dirhams, reflecting a record growth rate exceeding 230%, rising from 111 billion dirhams to 368 billion dirhams. Additionally, investments in debt securities grew by 116 billion dirhams, showing a 40% increase from a total of 290 billion dirhams to 406 billion dirhams during the same period.
Banking activities in the UAE have also seen similar substantial increases since the end of 2020, attributed to an expanding customer base as the country solidifies its position as a preferred place for living and work. Over the last five years, banks operating in the UAE attracted 1.4 trillion dirhams in new deposits, achieving an overall growth rate surpassing 73%, bringing the total cumulative deposits in the UAE to 3.3 trillion dirhams compared to over 1.9 trillion dirhams at the end of 2020.
Deposits
Central Bank data indicates that resident deposits in the country grew by more than 1.3 trillion dirhams during this period, exceeding 3 trillion dirhams by the end of last year, up from 1.7 trillion dirhams at the end of 2020.
The increase in resident deposits was primarily due to activity from the private sector, which accounted for over 88% of the total new deposits, amounting to approximately 1.15 trillion dirhams. This pushed the cumulative balance for the sector to more than 2.25 trillion dirhams by the end of last year.
In contrast, the cumulative credit provided by banks in the UAE rose by 751 billion dirhams, showing a growth rate of over 42% over the five years, with the total credit balance jumping from 1.77 trillion dirhams in December 2020 to over 2.53 trillion dirhams by the end of December last year.
The credit growth was driven by increased financing activity in the private sector, which rose by nearly 35%, with new financing reaching 383 billion dirhams, elevating the total balance of banking credit extended to the local private sector from 1.1 trillion dirhams in 2020 to 1.49 trillion dirhams by the end of last year.