Savings deposits in UAE’s banking sector attract Dhs13.8 billion in Q1
- 16 Jun 2024
Savings deposits in the UAE’s banking sector, excluding interbank deposits, attracted about Dhs13.8 billion during the first quarter of this year, according to the latest statistics from the Central Bank of the UAE (CBUAE).
The apex bank’s statistics showed that savings deposits in the banking sector reached Dhs286.67 billion at the end of March 2024, an increase of 8.9 per cent or the equivalent of Dhs23.5 billion on an annual basis compared to about Dhs263.14 billion in March 2020.
Savings deposits at the end of March 2024 increased on a monthly basis by 3 per cent or the equivalent of Dhs8.3 billion, compared to about Dhs278.37 billion in February. They also increased during the first quarter of this year by 5.1 per cent compared to about Dhs272.8 billion at the end of 2023.
The statistics indicated that demand deposits rose to Dhs 1.056 trillion at the end of last March, with an annual growth of 15.02 per cent, compared to Dhs 918.9 billion in March 2023, an increase equivalent to Dhs 138 billion.
Demand Deposits increased on a monthly basis by 0.09 percent, or the equivalent of Dhs 1 billion, compared to about Dhs1.05 trillion in the previous February. They also increased during the first quarter of this year by about Dhs 37.5 billion or 3.7 per cent compared to Dhs 1.019 trillion at the end of last year.
The Demand Deposits were distributed as follows: Dhs757.78 billion in local currency “dirham,” accounting for 71.7 percent, and about Dhs299.2 billion in foreign currencies, accounting for 28.3 per cent.
The Demand Deposits have continued to grow over the past years, rising from Dhs 577.6 billion at the end of 2018 to Dhs 599.6 billion at the end of 2019, Dhs 696.8 billion at the end of 2020, Dhs 848 billion in 2021, and Dhs 907.3 billion in 2022.
According to the Central Bank’s bulletin, Time Deposits reached Dhs 840.1 billion at the end of last March, with an annual increase of about 27.4 percent compared to about Dhs 659.6 billion in March 2023, an increase equivalent to Dhs 180.5 billion.
The local currency, the dirham, accounted for the largest share of time deposits at about 57.5 percent or Dhs 483 billion, while the share of foreign currencies was about 42.5 percent or Dhs357.1 billion.
Meanwhile, Emirates Development Bank (EDB), the key financial engine of UAE economic development and industrial advancement, and Commercial Bank of Dubai (CBD), one of the leading banks in the UAE, have formally announced a strategic partnership aimed at enhancing international trade services. This collaboration will combine EDB’s extensive client base and robust financial operational capabilities with CBD’s advanced trade finance expertise, unlocking new growth opportunities for businesses across the UAE.
The official signing ceremony took place at CBD’s Head Office in Dubai, attended by His Excellency Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, and Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai.
Under this strategic alliance, CBD will deliver a comprehensive suite of trade finance products and operational services to EDB’s clients. This initiative is designed to empower businesses to expand their portfolios and excel in the international trade arena. Key services will include handling Letters of Credit and Guarantees along with supporting foreign currency payments, ensuring a seamless and efficient trading experience.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said, “We are pleased to partner with Commercial Bank of Dubai to offer innovative and comprehensive trade finance solutions. This partnership marks a significant milestone in enhancing our trade finance offering, supporting businesses across the UAE. By leveraging our combined expertise and resources, we are dedicated to forging strategic partnerships that will bolster the UAE’s economic development and strengthen its position as a global hub for trade and investment.”
Dr. Bernd van Linder, Chief Executive Officer of Commercial Bank of Dubai, said, “We are delighted to join hands with EDB to embark on this journey that will bring new opportunities and growth for both of the organizations. This partnership highlights our shared vision of empowering businesses in the global trade landscape. Together, we will redefine standards and set new benchmarks for success.”
This partnership signifies a critical advancement in the financial landscape of the UAE, positioning both EDB and CBD as leaders in facilitating international trade and economic competitiveness. The collaboration allows EDB to leverage CBD’s extensive network and processing capabilities, offering clients a broader range of benefits. Meanwhile, CBD stands to gain increased volumes of trade business, opening new revenue streams and enhancing fee income.
The strategic alliance between EDB and CBD strengthens their commitment to providing comprehensive support for UAE businesses engaged in international trade. By combining EDB’s expertise in trade finance and working capital solutions with CBD’s robust financial capabilities, the partnership offers clients optimal support in mitigating risks and streamlining cross-border transactions.
WAM
