AMF attributed the increase in assets to an increase in banking sector assets in the UAE, Saudi Arabia and Qatar, which accounted for 58.9% of total Arab banking sector assets.
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Credit and investment drive expansion
The report also noted that asset growth in the UAE banking sector reached 11% last year, due to increased credit volume and investment. Meanwhile, assets in Saudi Arabia’s banking sector increased by 9.3%, driven by an 11.5% increase in real estate lending and credit growth in other sectors of the economy.
The UAE Central Bank noted in its 2023 Financial Stability Report that the country benefited from favorable domestic conditions, which helped protect the financial system from negative trends in the global economy. The UAE’s real GDP recorded a growth of 3.6%, spurred by a strong 6.2% increase in non-oil sectors, particularly tourism, real estate and financial sectors.
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