Islamic banking assets in UAE surpass Dhs700b: CBUAE

The assets of Islamic banks operating in the UAE exceeded Dhs700 billion for the first time in history at the end of 2023, according to the latest statistics from the Central Bank of the UAE (CBUAE).

The statistics showed that the assets of Islamic banks reached Dhs703.1 billion at the end of last December, an annual increase of 11.5%, compared to about Dhs630.7 billion at the end of December 2022, an increase of Dhs72.4 billion during 12 months, while it increased on a monthly basis by 0.6% orDhs4.2 billion, compared to about Dhs698.9 billion in November 2023.

The Central Bank’s statistics showed that bank credit at Islamic banks rose to AED428.9 billion at the end of last December, an annual increase of 7.82 percent, compared to about Dhs397.8 billion in December 2022.

Deposits in Islamic banks rose to Dhs495.5 billion at the end of last December, an annual increase of about 12.6 percent, compared to about Dhs440 billion in December 2022, an increase of Dhs55.5 billion during 12 months, while it increased on a monthly basis by 0.9 percent against Dhs491.1 billion in last November.

According to the statistics, the total investments of Islamic banks reached Dhs132.7 billion at the end of last December, an annual increase of 27.1 percent or Dhs28.3 billion, compared to investments of about Dhs104.4 billion in December 2022, while it increased on a monthly basis by about 1 percent compared to about Dhs131.4 billion in last November.

Islamic banks’ investments were distributed as follows:

-Dhs100.4 billion in bonds held to maturity-Dhs18.7 billion in financial instruments representing debt on others (bonds)-AED2.6 billion in shares-Dhs11 billion in other investments

As for traditional banks operating in the country, their total assets reached Dhs3.372 trillion at the end of last December, an annual increase of 11 percent compared to aboutDhs3.037 trillion in December 2022, an increase of Dhs335.2 billion during 12 months.

According to the statistics, traditional banks account for about 82.7 percent of the total assets of the banking system in the country at the end of last December, which amounted to Dhs4.075 trillion, compared to the share of Islamic banks, which amounted to 17.3 percent.

Total bank credit for conventional banks reached Dhs1.563 trillion at the end of last December, an annual increase of 5.5 percent, compared to Dhs1.482 trillion in December 2022. Meanwhile, bank deposits in conventional banks increased to Dhs2.026 trillion at the end of last December, an annual growth of 13.7percent, compared to Dhs1.782 trillion in December 2022.

Total investments of conventional banks grew by 15.6 percent annually to Dhs488.8 billion at the end of last December, distributed as follows:

-Dhs246.2 billion in financial instruments representing debt on others (bonds)-AED204.4 billion in bonds held to maturity-AED13.2 billion in shares-Dhs37.9 billion in other investments

Meanwhile, Abu Dhabi Securities Exchange (ADX) is collaborating with Eureeca, a global investment platform matching individual and institutional investors with growth and pre-IPO companies, to bolster accessibility to ADX IPOs in a fully compliant manner, appealing to growing interest from regional and global retail investors and high net-worth individuals (HNWIs).

The collaboration between ADX and Eureeca capitalises on the Exchange’s robust e-IPO investor portal, highlighting its commitment to simplifying the IPO process. By utilising Eureeca’s efficient capabilities, ADX seeks to improve investors’ access to IPOs and enable a more efficient process for international investors. The partnership capitalises on Eureeca’s multi-regulated status and international investor base, giving regional and international retail and HNWIs the opportunity to participate in ADX IPOs, positioning ADX IPOs on the global map.

Abdulla Salem Al Nuaimi, Chief Executive Officer of ADX, said, “We are excited to announce our partnership with Eureeca, supporting our commitment to innovation and inclusivity in the financial sector. By leveraging Eureeca’s advanced technological capabilities, we believe this new initiative, will significantly transform IPO accessibility and provide a simpler investment journey for a diverse range of investors who are looking to be part of ADX’s growth.

Sam Quawasmi, CEO and Co-founder of Eureeca, said, “We are proud to be collaborating with ADX as the first exchange to launch this revolutionary product, which showcases ADX’s pioneering mindset and technological advancement.”

WAM