Media ININ Economy We Trust
National banks increased their investments in bonds held to maturity within a year, by 111.7 billion dirhams, to reach 223.9 billion dirhams at the end of February 2023, compared to 112.2 billion dirhams at the end of February 2022.
According to the analysis of the “Gulf” on the data of the Central Bank, the traditional national banks were the largest contributor to new investments by about 93.9 billion dirhams, and 17.4 billion dirhams for Islamic national banks.
The data showed that banks in Abu Dhabi raised their investments in bonds held to maturity by 60.2 billion dirhams within 12 months, while banks in Dubai increased their investments in the same category by about 41.4 billion dirhams, and other UAE banks raised their investments by about 9.7 billion dirhams.
categories
Banks in the UAE reduced their investments in securities that represent debts to others (debt securities) by 41.4 billion dirhams, to reach 248.9 billion dirhams at the end of February 2023, compared to 290.3 billion dirhams at the end of February 2022.
Bank investments in stocks decreased during the 12 months by 5 billion dirhams, to 12 billion dirhams, compared to 17 billion dirhams at the end of February 2022.
Other bank investments rose by 6.4 billion dirhams, to reach 50.2 billion dirhams during the year.
Total investments
Total investments by banks (not including bank deposits with the Central Bank in the form of certificates of deposit and cash promissory notes) increased by 71.3 billion dirhams, to 541.4 billion dirhams at the end of last February, compared to 470.1 billion dirhams, and new investments were distributed between 31.6 billion dirhams for banks. Abu Dhabi, 30.4 billion dirhams for Dubai banks, and 9.3 billion dirhams for other Emirates banks.
bond
Bonds and other debt instruments are the most common form of held-to-maturity bond investments. Bonds and other debt instruments specify repayment schedules, a fixed maturity date, and are purchased to be held until maturity.
pluses
Investing in held-to-maturity bonds allows for future planning with the guarantee of a principal return at maturity and is considered a “safe” investment, with little or no risk, and the interest rate is fixed to earnings and does not change.
