The latest statistics issued by the Central Bank of the UAE revealed that the assets of Islamic banks operating in the country exceeded the barrier of 700 billion dirhams, equivalent to 190.6 billion dollars, at the end of the year 2023, for the first time in its history in an unprecedented manner.
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Statistics showed that the assets of Islamic banks reached 703.1 billion dirhams at the end of last December, an increase on an annual basis of 11.5 percent, compared to about 630.7 billion dirhams at the end of December 2022, an increase equivalent to 72.4 billion dirhams in 12 months.
While it increased on a monthly basis by 0.6 percent, or the equivalent of 4.2 billion dirhams, compared to about 698.9 billion dirhams in November 2023.
Spike in The Volume of Credit and Bank Deposits with UAE Islamic Banks
Central Bank statistics reported that bank credit to Islamic banks rose to 428.9 billion dirhams at the end of last December, an increase on an annual basis of 7.82 percent, compared to about 397.8 billion dirhams in December 2022.
Deposits in Islamic banks also witnessed a remarkable growth of 495.5 billion dirhams at the end of last December, an increase on an annual basis of about 12.6 percent compared to about 440 billion dirhams in December 2022, an increase equivalent to 55.5 billion dirhams in 12 months.
While it increased on a monthly basis by 0.9 percent, compared to 491.1 billion dirhams in the previous November.
Islamic Banks are Making a Leap Over Traditional Banks in The UAE
This is despite the dominance of traditional banks over about 82.7 percent of the total assets of the banking system in the UAE at the end of last December, which amounted to 4.075 trillion dirhams, compared to the share of Islamic banks amounting to 17.3 percent.
However, Islamic banks were able to achieve investments totaling 132.7 billion dirhams at the end of last December, an annual increase of 27.1 percent, or the equivalent of 28.3 billion dirhams, compared to investments of about 104.4 billion dirhams in December 2022.
Islamic banks’ investments were distributed at 100.4 billion dirhams in bonds held until maturity, 18.7 billion dirhams in securities that represent debts to others (debt bonds), 2.6 billion dirhams in stocks, and 11 billion dirhams in other investments.
Source: WAM
