According to the statistical bulletin released by the Central Bank yesterday, the cumulative balance of individual deposits reached its highest level to date. The data indicates that the value of deposits made by individuals in state banks during the initial eight months of the present year amounted to 65.7 billion dirhams. The total amount of their deposits by the conclusion of August in the previous year amounted to 625.2 billion dirhams, in contrast to 559.5 billion dirhams at the conclusion of the year 2022, indicating a growth rate of 11.7% during the time spanning from December 2022 to August 2023.
Individual deposits have a significant role in the overall composition of bank deposits, accounting for around 26% of the total, which equates to a substantial sum of two trillion and 403 billion dirhams.
The dominant proportion of people' deposits in the United Arab Emirates (UAE) is held by national banks, indicating a high level of trust and confidence that individuals, both domestic and international, place in the banking institutions of the UAE.
Based on data provided by the Central Bank, it is seen that national banks accounted for 84.6% of individuals' deposits, with the remaining portion being attributed to international banks. The examination of the Central Bank's data reveals a consistent upward trajectory in individual deposits, with a notable monthly surge observed from 2019 until August of the present year. However, the most substantial monthly increase occurred within the past two years, particularly following the conclusion of the "Corona" pandemic.
The investment yield on bank deposits is seen highly advantageous following a sequence of consecutive increments in the primary interest rate, from which depositors have derived benefits. Presently, the rate fluctuates between 3.2% and 5.5% per annum for deposits amounting to one million dollars. Financial institutions provide a range of incentives on banking products, such as deposits, with the aim of attracting additional liquidity in response to the increasing demand for financing. This strategy is also driven by the objective of enhancing financial performance before to the conclusion of the final quarter of the current fiscal year.
Based on data provided by the Central Bank, it is observed that savings deposits experienced a notable increase over the specified period of analysis, reaching a total of 262 billion dirhams by the conclusion of August. This figure surpasses the corresponding value of 246 billion dirhams recorded at the conclusion of the previous year, reflecting a substantial growth of 16 billion dirhams. This increase translates to a growth rate of 6.5% during the initial eight months of the year 2023.
The balance of the UAE Central Bank is gold:
According to the statistics report released by the Central Bank, the gold balance exhibited a notable rise by the conclusion of August, reaching 17.1 billion dirhams. This figure surpasses the value of 16 billion dirhams recorded in December of the preceding year, signifying a noteworthy increase of 1.1 billion dirhams, equivalent to a growth rate of 6.8%.
