The Banking Executive Magazine - October Issue

UAE Banking Sector UAE BANKING SECTOR HITS ALL-TIME-HIGH OF $136.94BLN IN CAPITAL, RESERVES A significant milestone has been achieved by the UAE banking sector. As of July 2024, the total capital and reserves of banks operating within the UAE exceeded AED500 billion for the first time. According to the latest data released by the Central Bank of the UAE (CBUAE), the sector’s capital and re- serves witnessed a substantial year- on-year growth of 10.5%, rising from AED454.9 billion in July 2023 to AED502.6 billion in July 2024. Furthermore, the sector’s capital and reserves experienced a notable in- crease of approximately AED13.3 billion during the first seven months of 2024, growing from AED489.3 billion at the end of 2023. According to the apex bank, these figures exclude subordinated bor- rowings and deposits but include current year profits. National banks have the lion's share accounting for 86.3% of the total capital and reserves, reaching AED433.7 billion by July 2024, re- flecting a year-on-year growth of 10.4%. Foreign banks also played a signifi- cant role, contributing 13.7% to the total capital and reserves, amounting to AED68.9 billion by the end of July, marking an 11.1% year-on-year in- crease. This remarkable achievement high- lights the strength and resilience of the UAE’s banking sector, solidifying its position as a key driver of the na- tion’s economic growth and stability. the BANKING EXECUTIVE 14 ISSUE 189 OCTOBER 2024