Banks. Renaissance Artery

Youssef Al Bustanji (Abu Dhabi)

Since its inception, the UAE’s financial and banking sector has played a pivotal role in bringing about an unprecedented economic renaissance that has managed to transform the country into a world-class financial hub and transform the entire region. An attractive area for international investors and companies and a focus for economic and financial decision makers at all levels around the world.
From the early stages of establishing the state, the firm and solid foundations of which were laid by the late Sheikh Zayed bin Sultan Al Nahyan, may God rest in the strengthening stage during the reign of the late Sheikh Khalifa bin Zayed Al Nahyan. May God have mercy on him, the state has strengthened its position as one of the most important financial and business centers in the world, to the crossroads of the future under the leadership of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President. The state, God help him, the UAE today flies at the forefront of the world’s countries, on the wings of the digital economy, financial technologies and artificial intelligence systems.
Today, the UAE’s banking sector is considered the largest banking sector in the Middle East and North Africa, surpassing it in asset value and the role played by all countries in the region. UAE National Banks has become one of the largest, safest and most reliable banks in the world, and the assets of some national banks now exceed 1 trillion dirhams.

It has not been easy for economic decision makers in the country to achieve a quantum leap in the composition of the national economy and strengthen global confidence in the UAE’s economy, its systems and legal environment over the past five decades. In addition to continuous work, innovation and creativity, attracting minds, knowledge, technology and trust and betting on national institutions and taking into account the children of the country who are the true sustainable wealth and the main building material. Capacity for development and continuity.
The degree of development achieved by the UAE in the financial sector can be the best indicator of the level of variability of rapid development and unprecedented growth in a short period of time.
To translate this into official figures and statistics, data provided by the Central Bank of the UAE shows that money issued in the UAE has increased 72 times between 1977 and August 2022, as the value of money exported has increased. Now it is 113 billion dirhams, compared to 1.57 billion dirhams. One billion dirhams in 1977, which is the oldest statistic of the central bank, which was established in 1980. The responsibility of managing the financial and banking sector was assigned to the UAE currency. Council before this date.
As for the assets of the UAE Central Bank, they multiplied by 81 to reach AED 497 billion at the end of August 2022, while the assets of the UAE Monetary Board totaled AED 6.1 billion in 1977.
While the total asset value of banks operating in the country has increased by about 100 times, reaching MAD 3.523 trillion at the end of August 2022 compared to MAD 35.8 billion at the end of 1978.
The banking sector of the UAE is considered to be an important lever that has managed to finance the process of developing infrastructure and other sectors, real estate, industrial, commercial and general investments in the UAE, bringing them to the UAE. At the advanced international level it is today.

Credit
Data show that total credit, i.e. loans and funds issued by banks in the local market, increased 75 times, reaching AED 1,978 trillion at the end of August 2022, from AED 22 billion in 1978, while loans and bank facilities were allocated to individuals. In particular, the sector multiplied 60 times and reached 1.18 trillion dirhams. at the end of August 2022, compared to AED 19.6 billion in 1978.

consumer confidence
Overall, the UAE’s banking and finance sector has managed to strengthen customer confidence in its activities, and high customer and business trust in domestic banking institutions and other organizations operating in the country has supported its ability to attract depositors. , resulting in a duplication. The value of deposits in the country’s banks will reach AED 2.166 trillion by the end of August 2022, around 125 times the AED 15.8 billion in 1978. With that, the required reserves of banks operating with the Emirates United Arabs. The central bank grew by about 94 times to reach MAD 93 billion at the end of last August, up from MAD 994 million in 1978.

money in circulation
The scale of unprecedented growth and great development in the performance of all business sectors in the local market during the same period is evident in the increase in money supply in the UAE market: now AED 719 billion, compared to 2 .6 billion dirhams in 1975. And domestic private liquidity has multiplied 185 times to reach 1628 trillion dirhams now compared to 8.82 billion dirhams in 1975, while total liquidity in UAE market has doubled 131 times to 2016 trillion dirhams now compared to 15479 million dirhams. ????????
As for money in circulation in the public outside banks, it multiplied by 157, reaching around MAD 98 billion at the end of August 2022, against MAD 628 million in 1975.