The banking sector is exceptional performance during 2024

During the past year, 2024, the banking sector in the UAE recorded exceptional performance, and the indicators made great leaps compared to previous years, whether at the level of bank assets, or the volume of deposits that were attracting, and the total loan portfolio grew and banks expanded in granting credit and financing to all economic sectors.

Strong growth has contributed to high levels of confidence in the Emirati banking system, and increased revenues on deposits in addition to the recovery of the various economic sectors.

According to the total annual data issued by the central bank, bank income increased from the margin of benefits on funds, as banks operating in the country collected 104 billion dirhams from the interest margin on various funds during the year 2024, recording the highest outcome in its history.

In turn, the allocations for unproductive and doubtful debts decreased in their collection, which reflects the quality of loans granting, verifying the creditworthiness of the customer, and his ability to pay his obligations on time. The total banks’ investments have also grown to the highest level ever, to show this continuous growth in investments the banking sector’s commitment to strengthening and diversifying its investment portfolio, which reflects confidence in the national economy. The number of employees in national banks increased during the year 2024, which reflects its commitment to strengthen their human cadres, and confidence in the banking sector’s ability to expand and meet the needs of the local market.

Assets and deposits

According to the “Central”, the total bank assets increased, including 12% bank admission certificates (equivalent to 488.9 billion dirhams during the year 2024), reaching 4.56 trillion dirhams at the end of December 2024, compared to 4.071 billion dirhams at the end of 2023.

The banking deposits in the Emirates also increased during the year 2024 by 12.9%, as it increased by about 326 billion dirhams from 2.521 trillion dirhams by the end of December 2023 to 2.847 trillion dirhams at the end of December 2024.

Bank credit

In turn, the UAE’s bank credit recorded an annual growth by 9.54% by the end of 2024, as it increased from 1.991 trillion dirhams in December 2023 to 2.181 trillion dirhams in December 2024, an increase of 190 billion dirhams.

Local credit increased by 9.7% to 1.997 trillion dirhams, while the credit granted to the private sector increased by 9.3%, to 1.218 trillion dirhams, while the credit directed to the government and the public sector recorded a growth of 8.5% to 779 billion dirhams.

Unproductive debt

For its part, the non -produced debts in the banking sector witnessed a remarkable decline during the year 2024. These debts decreased to 99.8 billion dirhams by the end of the year, representing 4.1% of the total loan portfolio of 2.4 trillion dirhams.

Total investments

The data showed that bank investments operating in the country increased by 16% by the end of December 2024, to reach 735.6 billion dirhams compared to 635.1 billion dirhams in December 2023, reflecting an increase of 100.5 billion dirhams.

These investments were distributed between “debt bonds”, which amounted to 322.2 billion dirhams, an increase of 21.7%, compared to 264.7 billion dirhams in December 2023, and “securities retained until the date of entitlement”, which reached 339.4 billion dirhams, an increase of 11.1%, compared to 305.3 billion dirhams in December 2023.

Investments in “stocks” reached 19.4 billion dirhams, an increase of 19.8%, compared to investments amounting to 16.2 billion dirhams in December 2023, in addition to “other investments” that settled at 54.6 billion dirhams, an increase of 11.7%, compared to 48.9 billion dirhams in December 2023.

Income of the benefits

The banks operating in the country collected 104 billion dirhams of the interest margin on various funds during the year 2024, registering the highest outcome in its history. This number represents an increase of 6.3%, compared to 97.8 billion dirhams in 2023.

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32.59 thousand employees

The number of employees in national banks reached 32 thousand and 590 employees at the end of 2024, and this number represents an increase of 5.6% compared to 30 thousand and 863 employees at the end of 2023, which reflects the addition of 1727 new employees within a year.