National banks have significantly increased their investments in local stock markets, reflecting growing confidence in the UAE’s economy.

The Central Bank of the UAE (CBUAE) recently released data indicating a substantial increase in equity investments by national banks. Over the past 12 months, these banks have raised their investments by $1.19 billion, highlighting their positive outlook on the UAE’s economic prospects and commitment to supporting domestic businesses.

As of May 2024, national banks had invested $4.38 billion in local stock markets, a notable 37.6% increase from $3.18 billion in May 2023.

Foreign banks also boosted their investments, reaching $81.6 million by the end of May, a 50% increase from $54.4 million in the same month the previous year.

National banks dominated equity investments, accounting for 94.9% of UAE banks’ $4.46 billion total, while foreign banks contributed 5.1%.

Traditional banks have driven the surge in equity investments, with their investments in local stock markets rising to $3.86 billion—a 52.7% increase from $2.5 billion in May 2023. Conversely, investments by Islamic banks fell by 15.4%, totaling $598.9 million compared to $707.8 million a year earlier.

Regional breakdowns reveal that as of May 2024, Abu Dhabi banks invested approximately $3 billion in local stock markets, Dubai banks invested nearly $599 million, and banks in other emirates contributed around $762 million.

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