Rising Dirham-denominated banking deposits reflect growing confidence in UAE economy
In a bullish sign reflecting the growing confidence in the UAE economy and improvement in the investment climate, UAE Dirham-denominated deposits with the banking sector in the country amounted to AED965.3 billion, claiming 70 percent of the value of total multicurrency banking deposits by end of April, 2017. According to UAE Central Bank data, deposits in UAE Dirham increased by AED32.5 billion during the first four months of 2017, to AED965.3 billion from AED932.8 billion by end of April, with UAE nationals and residents alike opting for conventional and Islamic Sharia'-compliant banking deposits, being a safer investment vehicle comparatively with other investment pools available in the market.
Banking deposit interest rates in Q1 ranged between 0.79 percent and 1.5 percent, as per CB statistics, with some banks offering relatively higher rates to lure customers and ensure more cash inflows.
The deposits spiraled by AED23.93 billion in March before edging down during April to AED965.3 billion, according to the CB figures.
