By: Mahmoud Gamal

Abu Dhabi – Mubasher: Deposits by non-residents in the UAE exceeded the volume of loans offered to them by AED 70 billion ($19.06 billion) by the end of October 2018, newly-released data showed.

The total value of non-resident deposits amounted to AED 213.1 billion by the end of last month against AED 143.1 billion in loans or financial facilities, data released by the Central Bank of the UAE showed.

Non-resident deposits made up around 7.5% of total deposits, which reached AED 2.841 trillion by the end of October.

Year-on-year, non-resident deposits grew 15.8% or by AED 29.2 billion from AED 183.9 billion in October 2017. Similarly, non-resident loans increased 8% or by AED 10.6 billion year-on-year from AED 132.5 billion.

Commenting on the data, economic analyst Basel Abu Toeima said that this indicator confirms the UAE banking sector’s attractiveness and strength for foreign investors, owing to its good interest rate offer.

UAE interest rates on deposits have become satisfactory and attractive compared to other means of investment, the analyst told Mubasher.

Interest rates have increased over the past year, have continued to grow in 2018, and will continue to rise in 2019 as the US Federal Reserve moves forward with its interest rate hikes, Toeima explained, indicating that such increases are attractive to investors, particularly foreign ones.

Translated by: Nada Adel Sobhi