The May 2024 Monthly Statistical Bulletin released by the Central Bank of the United Arab Emirates reveals that there has been significant growth in total banking transactions and cheque clearances during the first five months of this year. This report illustrates the strong performance and growth of the United Arab Emirates’ financial sector, showing resiliency and expansion.
PC: Economy Middle East
Rise in UAE Funds Transfer System Transactions
Value of transactions Totaling to around AED7.9 trillion ($2.15 trillion) in the first five months of 2024 through UAE Funds Transfer System (UAEFTS), reflecting a growth rate of 17 percent from the recorded AED6.748 trillion during the similar period of 2023.
These transactions are categorised into interbank transfers and customer-to-bank transfers. Interbank transfers amounted to AED4.968 trillion; on the other hand, bank customer transfers amounted to AED2.93 trillion. The steady increase in such figures evidently signifies the general rise of financial activity and interbank cooperation within the UAE.
Monthly Breakdown of UAEFTS Transactions
The monthly transaction values exhibit a consistent upward trend:
- January: AED1.512 trillion
- February: AED1.449 trillion
- March: AED1.565 trillion
- April: AED1.592 trillion
- May: AED1.78 trillion
These figures point to a month-on-month increase, with May at AED1.78 trillion. The incremental rise of transactions underlines a healthy and growing financial ecosystem within the UAE.
Cheque Clearing System Performance
The Image Cheque Clearing System (ICCS) performance was equally impressive, with a total value of AED544.4 billion cleared over 9.33 million cheques during the first five months of 2024. If this spread is broken down into months, it will range from a low of 1.79 million to 1.83 million in May 2024, thus also representing a mix of cheque clearing activity but somewhat stable in nature:
- January: AED109.4 billion for 1.965 million cheques
- February: AED106.7 billion for 1.837 million cheques
- March: AED112.6 billion for 1.855 million cheques
- April: AED92.9 billion for 1.66 million cheques
- May: AED112.7 billion for 2.01 million cheques
This peak occurred in May, indicating that this was the month with the highest cheque clearing activity, according to the general trend of the increasing values on transactions across UAEFTS.
Cash Deposit and Withdrawal Trends
The central bank’s report also details cash management trends and shows that the value of cash deposits at the Central Bank reached AED75.1 billion for the first five months of 2024, while cash withdrawals stood at AED88.17 billion. This was AED88.1 billion withdrawn in the form of banknotes and AED29.8 million in coins.
This means that during this period, more cash is withdrawn than deposited, hence indicating a greater demand for physical money.
Conclusion
Released data from the Central Bank of the UAE has outlined an extremely active and growing financial sector. The high growth in transaction volumes and cheque clearances emphasises that there is an extension in economic activity and a strong, powerful financial infrastructure laid in the UAE. These trends are indicative of a thriving banking environment that bolsters confidence in the stability and growth potential of the UAE’s financial sector.
