In a powerful start to the year, UAE banks have kicked off 2025 with a financial surge, boosting their total investments to a staggering Dh742.9 billion by the end of January. This Dh7.3 billion month-on-month increase reflects a robust 16.1% growth compared to January 2024, underlining the strength and momentum of the UAE’s banking sector. According to the latest data from the Central Bank of the UAE, the driving force behind this uptick comes from multiple fronts — notably a surge in investments in debt securities and equities.
Debt-related securities, representing a major portion of banks’ portfolios, climbed to Dh332.3 billion, marking a remarkable 26.1% year-on-year spike. Meanwhile, held-to-maturity bonds reached Dh335.7 billion, a 7.9% rise from last year, despite a slight monthly dip. Investments in equities also painted a promising picture, soaring 19.4% year-on-year to Dh19.1 billion, despite showing a modest 1.5% monthly decline. Other categories of investments added to the upward trend, growing 13.2% annually and 2.2% month-on-month to Dh55.8 billion.
The banking momentum didn’t stop there. Total credit extended by banks reached an impressive Dh2.186 trillion, a 9.5% jump over the previous year. Deposits crossed the Dh2.84 trillion mark, reflecting an 11.8% year-on-year rise, further solidifying the banks’ liquidity and lending capacity. The overall value of banking assets rose 11% annually to exceed Dh4.562 trillion — a testament to the sector’s scale and resilience.
In terms of financial movement, the UAE Funds Transfer System (UAEFTS) processed transactions worth over Dh1.786 trillion, including Dh1.109 trillion in interbank transfers and Dh677.64 billion in customer transfers. Cheque clearances touched Dh118.48 billion from nearly 2 million cheques, showcasing ongoing reliance on traditional banking modes. Additionally, Dh19.929 billion was withdrawn from the Central Bank, while deposits amounted to Dh15.217 billion.
Together, these figures demonstrate that the UAE’s banking system is not only expanding but thriving — balancing innovation, investment, and consumer confidence in one powerful financial wave.
