Logistics, storage sectors get Dhs27b credit facilities in H1

Total credit facilities provided to the logistics, storage and communications sectors in the UAE amounted to Dhs84 billion by the end of June 2020 from Dhs57 billion in December 2019, according to figures revealed by the Central Bank of the United Arab Emirates.

According to the CBUAE’s data, credit provided to these sectors in H1 of 2020 reached around Dhs27 billion, reflecting the significant role played by these sectors in accelerating economic growth, specially against the backdrop of the fallout of the COVID-19 pandemic on various economic sectors.

These sectors contribute around Dhs127.7 billion, or 12.3 per cent, to the country’s non-oil Gross Domestic Product, figures released by the Federal Competitiveness and Statistics Authority have shown.

Agricultural sector: The value of banking facilities received by the agricultural sector in the first half of 2020 totalled around Dhs768 million, raising the cumulative total of facilities received by the sector to Dhs1.82 billion at the end of June 2020, according to recent figures issued by the Central Bank of the UAE.

Sultan Alwan, Acting Under-Secretary of the Ministry of Climate Change and Environment, said, “Achieving food security and sustainability and ensuring flawless and flexible food supply chains for local markets are priorities of the UAE, in general, but especially of the Ministry of Climate Change and Environment. Implementing modern agricultural systems is the cornerstone of this strategic goal.”

He added that financing investments in the agricultural sector by the banking sector and supporting the establishment of farms that utilise modern agricultural technologies will help ensure the sector’s sustainability, achieve food security, and realise self-sufficiency, as well as raise the competitiveness of local agricultural products.

Statistics from the Central Bank of the UAE show a significant increase in the financing of the agricultural sector, reaching its highest levels since March 2019, with the balance of banking facilities provided to the sector amounting to Dhs1.542 billion in the first quarter of 2020, an increase of Dhs490 million compared to December 2019.

According to a recent statistics released by the Central Bank of the United Arab Emirates, The total value of fund transfers among the UAE’s banks amounted to Dhs5.054 trillion during the first six months of 2020.

The bank fund transfers during the reference period hit Dhs3.24 trillion, while individual transfers stood at Dhs1.814 trillion. The transactions are made through the UAE Fund Transfer System (UAEFTS) that enables the lenders to conduct all interbank local fund transfers. On a monthly basis, March saw the total transfers by individuals and banks altogether cross the one trillion dirham mark, with January recording Dhs948 billion, and February Dhs847 billion.

The rest is divided over the remaining months of the reference period. FTS is a funds transfer mechanism in the UAE wherein transfer of money takes place from one Bank to another through the UAE’s Central Bank system. In compliance with regulatory requirements, all Banks in UAE have been mandated to use the UAE FTS for all Dirhams transfers.

In the meantime, total withdrawals from the CBUAE during the reference period valued around Dhs116.13 billion, Dhs116.099 billion of which are banknotes and the remainder in coins. Deposits reached Dhs103.715 billion, Dhs103.711 of which are in banknotes and the rest in coins, according to the financial regulator’s figures. The total assets of the 18 listed national banks rose to around Dhs3 trillion in H1 of 2020, up 8.2 per cent, compared to the comparable period of 2019, reflecting the strong financial profile boasted by the Emirati banks, according to data released on their websites. The sector’s activity is highlighted by the profitability of the banks, as deposits increased around 13 per cent to around Dhs1.942 trillion during the first half of the year, from around Dhs1.72 trillion in the same period last year.

Loans also witnessed growth, climbing 8 per cent from Dhs1.509 billion to Dhs1.629 billion during the reference period. In more detail, the total assets of 11 ADX-listed national banks amounted to Dhs1.643 trillion against Dhs1.575 trillion. In DFM, seven listed banks saw their total assets increasing from Dhs1.069 trillion to Dhs1.347 trillion.

FAB is the best performer with asset worth Dhs866 bn, accounting for 28.8 per cent of the total assets of all listed national lenders. Emirates NBD comes second with Dhs694.3 billion, or 23.1 per cent, followed by ADCB, Dhs406 billion, Dubai Islamic Bank, Dhs295 billion, and Abu Dhabi Islamic Bank, Dhs124 billion.

WAM