UAE Banks Process Staggering $3.7 Trillion in Financial Transfers in 7 Months

UAE banks processed 2.111 trillion dirhams through the Emirates Financial Transfer System in July, marking an 8.7% jump from June's 1.941 trillion dirhams. The surge reflects growing confidence in the banking sector as both individual lending and bank investments hit record highs.

The Central Bank's latest banking statistics show the system handled 1.271 trillion dirhams in interbank transfers and 840.29 billion dirhams in customer-to-customer transactions during July. For the first seven months of 2025, total transfers exceeded 13.581 trillion dirhams.

Banks also cleared 13.33 million checks worth 841.998 billion dirhams using digital check images during the same seven-month period, showing how digital payment methods continue gaining ground.

Personal lending surges as economy strengthens

Individual loans from UAE banks jumped 16.6% year-on-year to 532.9 billion dirhams in July, up from 457 billion dirhams in July 2024. This 75.9 billion dirham increase signals strong consumer confidence and economic activity.

Total bank credit reached 2.366 trillion dirhams in July, compared to 2.180 trillion dirhams in December 2024. The 12.6% annual growth rate, worth 264 billion dirhams, shows banks are actively lending across all sectors.

Bank investments reach historic peaks

UAE bank investments hit an all-time high of 817.5 billion dirhams by end-July, climbing 18.3% from the previous year. This 126.2 billion dirham increase demonstrates banks are finding profitable opportunities beyond traditional lending.

The investment portfolio breaks down into several categories: 384.1 billion dirhams in debt securities, 353.1 billion dirhams in bonds held to maturity, 22.8 billion dirhams in equities, and 57.5 billion dirhams in other investments. Stock investments showed particularly strong growth, rising 34.1% annually.

Bank reserves with the Central Bank grew 22.1% year-on-year to 698.8 billion dirhams in July, up from 572.5 billion dirhams in July 2024. Higher reserves indicate banks are maintaining strong liquidity buffers while preparing for future growth.

Deposit growth reflects economic confidence

Total bank deposits reached 3.080 trillion dirhams in July, compared to 2.736 trillion dirhams a year earlier. Cash deposits specifically grew by 71.9 billion dirhams during the first seven months of 2025, reaching 885.1 billion dirhams.

Near-cash deposits, which include savings accounts and short-term deposits, jumped to 1.517 trillion dirhams from 1.368 trillion dirhams in December 2024. This 149 billion dirham increase shows people and businesses are keeping more money in the banking system.

For investors and policymakers, these numbers paint a picture of a banking sector firing on all cylinders. Strong lending growth suggests businesses are expanding and consumers are spending. Record investment levels indicate banks see profitable opportunities ahead. And growing deposits show people trust the system with their money.

The data supports the UAE's broader economic strategy of diversifying beyond oil and building a knowledge-based economy. When banks lend more and invest more, it typically means the overall economy is growing and creating new opportunities.