UAE banks’ total capital and reserves reached a new high of $134.8 billion by the end of June this year, reflecting a strong 10.6% year-on-year growth spurred by a robust economic performance.

According to the Central Bank of the UAE (CBUAE), banks saw a 1.5% month-on-month increase in capital and reserves, with a 1.2% rise in the first half of 2024. National banks held the majority, contributing 86.3% of the total, with reserves growing to $116.3 billion, up from $105.2 billion in June 2023.

Foreign banks contributed 13.7% of the total capital reserves, which rose to $18.4 billion, reflecting a 10.6% increase from $16.6 billion year-on-year.

Alongside this growth, UAE banks’ investments reached a record high of $185.1 billion in June, marking an 18.4% rise compared to the previous year. Month-on-month, investments increased by 1.07% from $183.2 billion in May, and they grew by 7.1% in the first half of 2024, up from $172.9 billion at the end of 2023.

Bonds held to maturity accounted for the largest portion of UAE banks’ investments, comprising 48.8% and totaling $90.4 billion, a 26.2% increase year-on-year.

Investments in third-party debt securities comprised 41.1% of the total, reaching $76.1 billion, with a 12.5% annual rise. Equity investments also experienced significant growth, surging 38% year-on-year to $4.5 billion.

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