Although oil slump has impacted the UAE government’s deposits, it has made no difference in the UAE residents’ wealth as the amount of private wealth in banks has increased by millions of dirhams this year.
According to the data provided by the National Bank of Abu Dhabi (NBAD), as of September 2016, the amount of UAE residents’ accounts have swelled to Dh1,321.8 billion, showing a growth of 3.4% when compared to a year earlier.
The UAE Central Bank has released data which compares stats between August 2016 and September 2016, which shows the number of residents’ accounts increased by Dh11.4 billion, while the total bank deposits rose to Dh30.2 billion.
Senior economist at NBAD, Alp Eke said, “Government deposits have been declining and non-resident depositsare filling the gap. That is something desirable”.
Residents’ & non-residents’ accounts
Increasing by Dh17.1 billion, the majority of residents chose to deposit their money in time and savings accounts in both foreign currencies and dirhams. Whereas, the UAE government’s deposits have dropped by Dh4.8 billion.
Apart from the UAE residents’ deposits, the non-resident deposits are also seeing a surge in the UAE as they have grown by Dh18.8 billion in 2016. People from overseas deposit their money in the UAE banks as they find them more secure. Non-resident deposits touched Dh186.9 billion, up by 17.92% year-on-year.
Market specialists are of the opinion that a significant amount of money held by non-resident people belongs from India and Europe.
Founder of personal finance site, MoneyCamel.com, Preeti Bhambri commented in this regard, “Interest rates are much higher in India, but the major attraction for Indian money is that deposits in the UAE are pegged to the US dollar. A dollar peg gives investors a hedge against a falling Indian rupee and the flexibility to move money to other dollar-based currencies”.
Mr Eke, while sharing his thoughts about non-resident accounts said that although deposits from non-residents of the UAE have been increasing, the growth rate it still at 12.4%.
Founded in 1986, National Bank of Abu Dhabi (NBAD) became Abu Dhabi’s first bank. It is the second largest lender bank in the United Arab Emirates. NBAD has the largest international branch network among the UAE networks – with offices in 17 countries across five continents.
UAE Central Bank
The central bank of the UAE is responsible for managing monetary policy, currency and banking regulations being followed in the United Arab Emirates.
Established in 1973, the bank provides financial support to the government, maintain the UAE’s currency and gold reserves and act as the government’s banker.
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