48.7 billion dirhams, private sector loans in the first half, and its deposits jumped 132 billion

Aug 23

Data from the UAE Central Bank showed that the financing and facilities of the private sector (which includes individuals and the trade and industry sectors) increased during the first half of the year 2023, by about 48.7 billion dirhams, while its new deposits increased by 132.1 billion dirhams, to be the highest among the various entities.
The value of new loans obtained by the private sector during the first half amounted to about 48.7 billion dirhams, a growth of 4.2%, to reach 1.22 trillion dirhams by the end of June 2023. UAE Central Bank data indicated that the commercial and industrial sectors obtained 27.7 billion dirhams, a growth of 3.5%, Bringing the sector’s total loans to 825.9 billion dirhams at the end of last June, as loans to small and medium-sized companies increased by 2.3 billion dirhams in the first half to reach 85.6 billion dirhams at the end of June, a growth of 2.8%.

The value of loans and facilities obtained by individuals in the first half of 2023 increased to about 21 billion dirhams, a growth of 5.6%, to reach 398.8 billion dirhams by the end of last June.

Public sector

As for the public sector, which includes government-related entities, it recorded an increase in loans by 11.1 billion dirhams in the first half to 264.4 billion dirhams at the end of June, and government loans also increased by 7.1 billion dirhams to 218.8 billion dirhams.

The financing of non-bank financial institutions declined by 0.6 billion dirhams, to 12.3 billion dirhams by the end of June 2023. Thus, domestic credit, which includes the government and the public sector, and the private sector, which includes individuals, commercial and industrial, in addition to non-bank financial institutions, increased by 66.3 billion dirhams, to reach 1.717 trillion dirhams. As for credit to non-residents (non-local), it decreased by 0.9 billion dirhams, to 227.6 billion dirhams. Thus, total credit increased by 65.4 billion dirhams in the first half of 2023 to 1.945 trillion dirhams.

deposits

Resident deposits recorded an increase of about 161.3 billion dirhams in the first half of 2023, to reach 2.171 trillion dirhams, but they increased over the course of 12 months by about 327.5 billion dirhams.

The growth in resident deposits came due to an increase in private sector deposits by 132.1 billion dirhams in 6 months, and 216.2 billion dirhams in 12 months, to reach 1.481 trillion dirhams by the end of June.

Government deposits increased by 28.9 billion dirhams in 6 months, and 108.4 billion dirhams in 12 months, to reach 425.7 billion dirhams at the end of June, while public sector deposits decreased by 2.9 billion dirhams, to reach 214 billion dirhams.

capital and reserves

The capital and reserves recorded an increase of 19.2 billion dirhams in 6 months, and 48.5 billion dirhams in 12 months, to 447.8 billion dirhams at the end of June. Special provisions and suspended interest increased by 3.1 billion dirhams to 123 billion dirhams, and general provisions increased by 2.4 billion dirhams. to 39.1 billion dirhams. Total bank reserves at the Central Bank rose by 86.8 billion dirhams in 6 months, and 132.8 billion dirhams in 12 months, to reach 484.9 billion dirhams by the end of June.