Government deposits at all-time high of Dh286B
abu dhabi — Government deposits in UAE-based banks hit an all-time-high of Dh286 billion by the end of September 2018, up Dh74 billion in the first nine months of the year, according to Central Bank of the UAE statistics.
The growth is attributed to rising oil prices, which grew by 35 per cent during the past 12 months, reflecting positively on the total assets of the banking sector. Government fiscal surpluses since the beginning of the year amounted to Dh186 billion, according to the Ministry of Finance statistics.
In more detail, government deposits increased by Dh21.2 billion during Q1, a growth of 10 per cent as compared to the end of 2017, and by Dh17.4 billion during Q2, setting a record rise of Dh35.4 billiob by the end of Q3 to Dh286 billion. Government deposits increased by Dh14.2 billion during the first nine months of 2017.
Non-resident deposits
Meanwhile non-resident deposits across the UAE’s banking system reported solid growth during the first nine months of the year, with their growth outstripping retail loans provided to non-residents by Dh63 billion by the end of Q3. The expansion in banks’ holdings of deposits corroborates investor confidence in the UAE banking sector, reckoned the first in the region in terms of capital adequacy and solvency, according to various international credit agencies.
During the first seven months of the year, non-residents’ deposits outstripped their loans by Dh61 billion, supported by rising interest rates on different certificate of deposits’ terms.
According to figures released by the Central Bank of the UAE, the cumulative non-resident deposits account was up to a two-year high of Dh205.4 billion by the end of September. According to the statistics, non-residents deposits comprise 11.8 per cent of total deposits at the UAE banks, figured at around Dh1.73 trillion.
In terms of credit, loans provided to non-residents amounted to Dh141.9 billion by the end of September against around Dh133 billion in the same month in 2017. They accounted 8.6 per cent of the total credit provided by the UAE banks, estimated at Dh1.623 trillion by end-September.