During the first 11 months of last year, individuals and companies retained financial surpluses in the form of deposits in banks totaling 38.4 billion dirhams, which brought the accumulated balance of this element to 311.2 billion dirhams by the end of November 2024, compared to 272.8 billion dirhams at the end of 2023, indicating a growth of 14%, according to the latest data from the Central Bank.
The data also showed that total deposits constitute 13.5% of total bank deposits, which amounted to 2.308 trillion dirhams by the end of last November. Since 2021, banks in the UAE have attracted record levels of deposits, especially from individuals and legal entities, supported by attractive interest rates, making them a priority choice for capital savings, as well as financial and economic stability.
Banks offer various deposit options, such as fixed deposits, flexible deposits, and Islamic savings accounts, which comply with Sharia principles. Bank expert Ahmed Yusuf noted: "The preference for physical persons and companies retains financial surpluses in the form of various deposits, especially savings, indicating the robustness of the economy, trust of investors in the government, and their inclination to utilize modern systems and legal norms corresponding to rapid changes in the local market."
Yusuf also pointed out that deposits are protected and guaranteed by state organizations, and represent a safe haven for depositors, as their returns exceed the returns in other investment sectors, given that Emirati banks have gained the trust of residents and investors due to their advanced technological infrastructure and comprehensive services.
Banking analyst Mustafa Ahmed shared his opinion: "The increase in interest rates over the past two years has caused many physical and legal persons to save extra money in savings deposits, on which at certain times the return was fixed between 5% and 6%, for million-dirham deposits, representing a unique return, especially for investors who prefer to avoid risks."
He added: "Local banks are also being utilized with high investor trust, which creates a certain level of confidence in the preservation of any financial surpluses over any number of years."
