Islamic banks account for 21% of gross domestic credit: CBUAE

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Gross credit provided by Islamic banks increased by 1.1% in the first four months of 2024 to AED433.7 billion, constituting more than 21% of aggregate bank loans and financial facilities, according to banking indicators by bank type – conventional banks (CB) and Islamic banks (IB) issued by the Central Bank of the UAE (CBUAE), a report said.

Gross credit extended by CB rose since the beginning of the year to the end of April by 4.3% to AED1.629 trillion ($435 billion), Emirates News Agency, WAM, said.

Apex bank data showed that investments by IB and CB grew by 9.8% and 3.7% in the period under review to AED145.7 bn and AED520.5 bn respectively.

Assets of IB operating in the local market amounted to AED737.4 billion, representing 17.16% of the total assets of the banking sector, while assets of CB reached AED3.559 trillion at the end of April.

In terms of deposits, IB recorded a 7.4% growth during the first four months of the current year to reach AED532.3 bn at the end of last April, while deposits with CB grew by 7.8% to exceed AED2.185 trillion at the end of the same period.