AED 61 billion surplus of non-resident deposits on their loans in the banking system

MEDIA, Abu Dhabi, Sept. 6, 2018 (WAM)

The UAE banking system has attracted more non-resident customers who have decided to inject more money into local banks, contributing AED 61 billion to their loans over the first seven months of this year. Industry experts said the UAE’s banking industry’s strong confidence from foreign investors is also fueled by incentives to attract more money, including high interest rates on deposits, which ensures a steady return in good terms compared to the returns that can be achieved from Through investment in other investment channels. The weighted average cost of demand, savings and term deposits for various terms reached 1.5% in July 2018 compared to 15 in the same period of 2017, according to figures issued by the Central Bank. The cumulative balance of non-resident deposits at the end of July rose to 196.1 billion dirhams, its highest level in nearly two years. Non-resident deposits account for 11.5% of the bank’s total deposit balance of AED 1.695 trillion. On the loans side, the total balance of non-resident loans by the UAE banking system stood at 134.7 billion dirhams at the end of July this year compared with 132.9 billion dirhams in the same month of 2017. Non-resident loans accounted for 8.3% of the bank’s total credit balance of AED 1.623 trillion.