The UAE’s banking sector has witnessed a significant increase in time deposits, which have surged by AED 180.5 billion since March 2023, bringing the total to approximately AED 659.6 billion.
This remarkable growth highlights the robust confidence in the nation’s financial stability and the appeal of its banking products.
The dirham, UAE’s local currency, dominates these deposits, accounting for the majority share at 57.5 percent. This translates to about AED 483 billion held in dirham-denominated time deposits. Foreign currencies, on the other hand, make up 42.5 percent of the total, amounting to approximately AED 357.1 billion.
The increase in time deposits reflects the UAE’s growing economic strength and the strategic moves by financial institutions to attract both local and foreign investments. It underscores the preference of depositors for the stability of the dirham and the attractive terms offered by UAE banks.
Financial experts suggest that the rise in time deposits is a positive indicator of economic health, showing that individuals and businesses alike are looking to secure their funds in stable, long-term financial products. This trend is expected to continue as the UAE maintains its position as a leading financial hub in the region.
