Banks’ deposits of greater than Dhs20m rose to Dhs1.31 trillion

Large deposits (greater than Dhs20 million) made up 59% the total deposits held by the banks based in the UAE that totalled Dhs2.222 trillion until the end of 2022, data from the Central Bank of the UAE revealed. Deposits of greater than Dhs20 million surged to Dhs1.31 trillion by the end of December, a growth of 11.4% from roughly Dhs1.175 trillion by the end of December 2021.

Deposit accounts of more than Dhs5 million up to Dhs20 million accounted for roughly Dhs269.24 billion, or 12.1 per cent of all deposits, an 11 per cent increase from Dhs242.46 billion in December 2021.

Deposits from Dhs1 million up to Dhs5 million made up roughly 13 per cent of the total at the end of last December, up 15.2 per cent from Dhs250.63 billion in December 2021.

Deposits of more than Dhs500,000 and up to Dhs1 million totalled Dhs108.5 billion, or 4.9% of all deposits, a rise of 13.5 per cent from approximately Dhs95.6 billion in December 2021. Deposits between Dhs250.000 to Dhs500,000 totalled Dhs84.26 billion, down from Dhs87.4 billion in December 2021.Deposits of up to Dhs250,000 amounted to about 7.2% or the equivalent of Dhs160.8 billion at the end of last December, an increase of 11.3 per cent compared to about Dhs144.47 billion in December 2021.

According to the bank recently latest statistics, The Central Bank of the UAE’s (CBUAE) balance sheet reached a record Dhs555 billion in December 2022, the highest in its history.

The balance sheet increased every month by 8.1 per cent, reaching Dhs555 billion at the end of last December, compared to Dhs513.61 billion in November 2022.

Its balance sheet also increased annually by 6.4 per cent, equivalent to Dhs33.4 billion, compared to some Dhs521.54 billion in December 2021, it added.

According to the bank’s statistics, in December 2022, its balance was distributed between assets, including cash and bank balances worth Dhs279.25 billion, investments saved to maturity worth Dhs180.44 billion, and deposits worth Dhs63.43 billion, loans and advances worth Dhs5.55 billion, and other assets worth Dhs26.32 billion.

Its balance sheet was also distributed between liabilities and capital, including current accounts and deposit accounts worth Dhs236.66 billion, certificates of deposit and cash bills worth Dhs164.75 billion, issued bills and coins worth Dhs120.01 billion, capital and reserves worth Dhs13.35 billion, and other liabilities worth Dhs20.22 billion.

The Central Bank of the UAE (CBUAE) has recently released a comprehensive report on the Takaful insurance sector in the UAE, with the aim of developing this critical industry and enhancing the country’s position as a leading Takaful insurance market globally.

The report highlights the growing importance of the Takaful insurance sector in the local market, as well as the expansion of its various financial indicators from 2018 to 2021.

In 2021, the gross subscriptions written by all Takaful insurance companies operating in the UAE totalled Dhs4.35 billion, representing a growth rate of 0.51 per cent compared to Dhs4.32 billion in 2020. These subscriptions accounted for 9.82 per cent of the gross premiums written in the insurance sector in 2021.

The health Takaful insurance activity represented the largest share, accounting for 43.6% of the gross subscriptions written in the Takaful insurance sector in the UAE in 2021. This was followed by Takaful insurance activity on assets and liabilities at 38.3%, and family Takaful insurance activity and fund accumulation operations at 18.1%.

At the end of 2021, 12 Takaful insurance companies were operating in the UAE, all of which are national companies. However, there is a possibility that this number could decrease over the coming period due to merger and acquisition activities.

The report also revealed that there are 62 national and foreign insurance companies operating in the UAE’s insurance sector. In 2021, the number of written Takaful insurance policies increased significantly to 992,106, compared to 820,517 policies in 2020.

Furthermore, the report covered several other aspects related to the business of the Takaful insurance sector, including sustainability operations, Emiratisation, and the prospects of digital transformation. The report highlighted that all Takaful insurance companies have specific strategies for digital transformation.

The report outlined the current practices of Takaful insurance companies and their initiatives to enhance their financial and technical performance, adopt the best sustainability practices, and attract and encourage UAE Nationals to work in this vital sector.

Additionally, the report emphasised the key advantages of the Takaful insurance sector in the UAE and the significant qualitative and quantitative developments witnessed, particularly in terms of regulatory and supervisory aspects.

The report highlighted the establishment of the Higher Shari’ah Authority (the Authority) and the Central Bank’s supervision and control of the insurance sector under Decretal Federal Law No. (25) of 2020. It also discussed the Authority’s various initiatives to develop the regulatory framework of the Takaful insurance market and its operational practices by creating Shari’ah governance mechanisms for Takaful insurance companies. Moreover, the Authority is developing Shari’ah standards to enhance confidence and flexibility in this sector, ensuring legal and Shari’ah certainty. The UAE has been a leader in this field since 1979.