News Saudi Ministry of Industry and Mineral Resources issues 118 new permits as sector grows

RIYADH: The UAE central bank’s foreign assets surged to 695.04 billion dirhams ($189.2 billion) in January, showing a 38.8 percent yearly increase, according to official data.

The financial sector’s total reserves also grew, hitting 4.1 trillion dirhams in January – a 0.8 percent monthly increase, according to official data.

Additionally, total bank credit at the end of January reached 1.996 trillion dirhams, a 0.2 percent increase of 1.991 trillion dirhams in December.

Domestic financing has decreased due to a 0.1 percent reduction in credit to the government sector, a 1.3 percent decline to the public sector, and a significant 13.6 percent contraction in non-banking financial institutions.

On the other hand, credit to the private sector increased by 0.5 percent in early 2024.

By the end of January, total deposits in the UAE’s banking sector climbed by 0.7 percent, reaching 2.53 trillion dirhams. Resident balances increased by 0.9 percent, driven by a 4.7 percent rise in government sector deposits and a 1 percent uptick in private sector balances.

However, non-banking financial institutions’ deposits fell by 24.9 percent.

The country’s monetary base witnessed a 1.8 percent growth in January, reaching 670.9 billion dirhams, compared to 658.8 billion dirhams in December 2023, driven by a rise in monetary bills and Islamic certificates of deposit by 12.8 percent.

The report highlighted that the total M1 money supply, composed of currency, demand deposits, and other liquid deposits, including savings deposits, reached 830 billion dirhams at the end of January.

This was attributed to a 900 million dirhams rise in currency in circulation outside banks, overshadowing a 200 million dirhams fall in monetary deposits.

Similarly, the total M2 money supply, encompassing cash on hand and money deposited in checking and savings accounts, savings accounts, and other short-term saving vehicles, increased by 0.2 percent month-on-month in January, reaching 2.02 trillion dirhams.

The total M3 money supply, which includes M2 plus government deposits with banks operating in the UAE and with the central bank, rose to 2.47 trillion dirhams in January, reflecting a 1.3 percent increase compared to the previous month.

Moreover, the CBUAE’s monthly balance sheet surged to 734.6 billion dirhams in January, compared to 720.9 in the previous month and 559.8 billion dirhams in the corresponding periods last year.

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