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Term deposits surge to AED 782 billion |
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Medium and long-term bank deposits increased by AED19.9 billion by the end of the first seven months of 2017, bringing to AED210 billion the total deposits held the banking sector, a growth of 7 percent over the corresponding period last year. Medium and long-term bank deposits now make up 27 percent of the total term deposits, valued at AED782 billion, according to UAE Central banks statistics released by the end of July. The growth is attributed to the Central bank's decision to raise the deposit interest rate following the US Federal Reserve's 1.5 percent interest rate hike for the second time since the beginning of 2017. Bank deposits now represent a safe haven commensurate in value with other investment vehicles, including shares and real estate, according to market analysts. For more detail, the total value of six-month to one-year deposits now hit AED153.7 billion, 11.5 percent up from the end of last year. Deposits of more than one year jumped in value to AED56.3 billion by the end of July, a 7.6 percent up compared to December 2016. Data released by the Central Bank don't include interbank deposits but rather cover government deposits. |
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