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|14 June, 2018

Term deposits in UAE banks surge 15% to $52bln

Growth attributed to rising demand over this type of deposits following significant increase in their value and their higher returns

The main branch for UAE Central Bank is seen in Abu Dhabi.

The main branch for UAE Central Bank is seen in Abu Dhabi.

REUTERS/Stringer

The 6-12 month term deposits in UAE banks surged to around Dh190 billion ($51.7 billion) during the first four months of the year, a 14.9 growth from Dh165.3 billion by the end of 2017, a media report said.

The growth is attributed to a rising demand over this type of deposits following the significant increase in their value and their higher returns in comparison with other investment vehicles, reported Emirates news agency Wam.

The 6-12 month deposits account for about 22.7 percent of total term deposits at UAE banks, valued at around Dh837.8 billion by the end of April.

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According to Central Bank of UAE (CBUAE) figures, the month of April saw the highest performance of this type of deposits with a total inflow of around Dh16 billion during the month, against Dh8.7 billion during the period from January through March.

In the meantime, three-month term deposits valued Dh474 billion by the end of the first four months of the year, comprising 56.6 percent of the total of other term deposits, estimated at Dh837.8 billion by the end of April.

Term deposits longer than one year, on the other hand, declined to Dh34.8 billion by April from Dh43.6 billion by the end of 2017.

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