Central Bank Report: UAE Banks’ Foreign Assets Surge
The central bank has revealed that the combined foreign assets of UAE banks accounted for 39.8% of the total accumulated assets of the country’s banking system by the end of 2024, amounting to 1.85 trillion dirhams from the total recorded assets, which neared 4.6 trillion dirhams at the end of the previous year.
Financial Stability Report Insights
The financial stability report indicated that the portion of cross-border assets held by UAE banks reached 27.1%. Furthermore, assets from foreign branches and subsidiaries represented 12.7% of the total accumulated assets.
Year-on-Year Growth Observed
In 2024, the aggregated foreign assets of the banking system experienced a year-on-year growth of 12.5%. These assets were primarily composed of loans, followed by investment assets and interbank lending. Corporate loans made up more than half of the total foreign loans, succeeded by government loans, non-bank financial institution loans, and trade receivables.
Decrease in External Liabilities
Moreover, the overall external liabilities of the banking system decreased by 9.4% annually in 2024, constituting 26.6% of the total assets of the UAE banking sector by year-end.
Local Operations External Liabilities Breakdown
The ratio of cross-border liabilities pertaining to domestic operations of banks stood at 16.5%, while the proportion of external liabilities from branches and subsidiaries of UAE banks was 10.1% of the total assets.
Composition of External Liabilities
Deposits remained the largest component of the aggregated external liabilities, followed by interbank borrowing and capital market financing.