Bank deposits in the UAE grew by 6.5 billion dirhams ($1.76 billion) in one month, fueled by a jump in resident and non-resident deposits. 

At the end of July 2021, total bank deposits in the country amounted to 1.915 trillion dirhams, up by 0.3 percent from 1.908 trillion dirhams in June 2021, the UAE Central Bank said on Wednesday. 

“[This is] attributable to 0.1 percent increase in resident deposits and 2.3 percent rise in non-resident deposits,” the banking authority said. 

However, gross credit fell slightly to 1.768 trillion dirhams from 1.769 trillion dirhams over the same period. The decline was due to lower domestic credit. 

According to the central bank, credit to the government sector, private sector and non-banking financial institutions also fell by 0.4 percent, 0.2 percent and 0.7 percent, respectively. However, credit to public sector, or government-related entities went up by 0.8 percent. 

Gross banks’ assets, on the other hand, rose by 0.8 percent, from 3.208 trillion dirhams at the end of June 2021 to 3.233 trillion dirhams at the end of July 2021. 

The UAE economy is expected to rebound this year after falling 6.1 percent in 2020 due to the coronavirus pandemic. 

Economic growth is likely to be around 4 percent this year, higher than the central bank’s December forecast of 2.5 percent, Minister of Economy Abdulla bin Touq said on Sunday. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

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