A “great confidence” pushes residents to deposit 30 billion dirhams in banks within 9 months – local economy

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The latest data issued by the Central Bank revealed that individuals residing in the UAE deposited an amount of 30 billion dirhams in banks operating in the country during the first nine months of this year, bringing their total deposits, at the end of September 2020, to 480.9 billion dirhams, compared to 450.9 billion dirhams at the end of December 2019, a growth of 6.6% during the first three quarters of this year.

These data also showed that national banks acquired the largest share of these deposits, at 406.7 billion dirhams, equivalent to 84.5% of the total, while the remaining share went to their foreign counterparts.

Great confidence

The CEO of “Afaq Islamic Finance”, Rashid Mahboob Al Qubaisi, told “Emirates Today” that local banks have great confidence from residents and non-residents alike, given the great reputation enjoyed by the banking sector in the UAE. And the size is the largest in the region in terms of assets and the number of operating banks.

He added that the conditions imposed by the new Corona virus (Covid-19) pandemic on the world’s economies have affected various investment sectors, so individuals prefer to keep cash until a clear horizon for the end of the health crisis that the world is going through and the resumption of investment activity at a normal pace as it was. Before the virus spreads.

Al-Qubaisi emphasized that bank deposits are the safest and most secure place for individuals. Therefore, we find demand for them, although the return is low and does not exceed 1%, but the trust factor is the most important at present.

National banks

Al-Qubaisi attributed the acquisition by national banks of the largest share of individuals’ deposits to factors including psychological comfort and the reassurance of keeping funds in a local bank, as well as the quality of services, and the provision of online platforms for them, smart applications on phones, and customer service centers that are available in more than one language. He considered that all these factors support attracting bank deposits, especially for individuals.


Rankings are high

The CEO of “Afaq Islamic Finance”, Rashid Mahboob Al Qubaisi, said that the Central Bank and the government in the UAE are firmly behind the banking sector, so over the years, local banks are classified with high ratings comparable to the largest international banks, and this is another reason for confidence. Supports the trend of individual funds towards bank deposits.

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