MIDDLEEAST TYCOON NEWS DESK: The UAE’s banking sector experienced a notable rise in its net international reserves, which surged by 11.1% to reach 1.273 trillion dirhams ($346.8 billion) by July 2024, up from 1.145 trillion dirhams at the close of 2023. This increase of 127.5 billion dirhams ($34.3 billion) reflects robust financial performance across the sector.
A key driver of this growth was the Central Bank of the UAE, whose share of the reserves grew by 14.6%, reaching 771.6 billion dirhams by the end of July, up from 673.42 billion dirhams in 2023. Meanwhile, the net international reserves held by banks operating in the UAE climbed 6.2%, totaling 501.6 billion dirhams, compared to 472.2 billion dirhams at the end of last year.
Gold reserves also saw a significant uptick, with the central bank’s holdings growing 23.5% year-on-year to 21.28 billion dirhams by July, compared to 17.226 billion dirhams in July 2023. Over the first seven months of 2024, gold reserves increased by 17.3%, up from 18.147 billion dirhams at the end of 2023.
The UAE’s banking sector also saw impressive growth in transactions. The value of transfers processed through the UAE Financial Transfer System exceeded 11.13 trillion dirhams during the first seven months of 2024, reflecting a 17% year-on-year increase. In terms of remittances, monthly transfers ranged from 1.4 trillion to 1.8 trillion dirhams, peaking in July.
Additionally, cheques cleared via image technology totaled 765.08 billion dirhams over more than 13 million cheques. Cash deposits and withdrawals at the central bank reached 111.4 billion dirhams and 120.3 billion dirhams, respectively, further underscoring the sector’s dynamic growth in the first half of 2024.
