Two experts: Benefit from the decline in consumption and investment sectors

Savings are at their highest level in 2020 for 13 years

• National banks acquired 189 billion dirhams of savings deposits, at a rate of nearly 88%.

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Two experts reported that, by the end of last year, the volume of savings in the UAE reached its highest level since 2008 (i.e. 13 years ago), taking advantage of the decline in consumption habits during the year of the pandemic (2020), and the control of calm in the investment sectors, which was reflected Affirmatively on savings in banks.

Residents of the Emirates

Finally, data issued by the Central Bank indicated that residents of the UAE, both citizens and residents, saved 43 billion dirhams during 2020, which is the highest number since 2008.

Savings deposits in all banks in the country, by the end of last December, amounted to 215 billion dirhams, of which 83.7% were in the national currency (dirham) and the rest in foreign currencies, compared to 172 billion dirhams at the end of 2019. The figures showed that national banks acquired the largest share of savings deposits, by the amount of 189 billion dirhams, equivalent to close to 88%.

Although interest on deposits is at its lowest level, registering less than 1% on deposits for a year, the growth of savings accounts deposits increased by 25% during the year of the pandemic.

Decline in consumption

The banking expert, Ahmed Youssef, said: “Last year, there was a clear decline in consumption in the interest of savings, a culture that we used to advocate a lot in the past,” explaining that “national banks have great confidence and acquire the largest percentage of deposits, and savings accounts are the safest base. Currently, the dirham is the preferred currency for savers, whether they are citizens or residents, because of the stability and stability witnessed in the national currency.

Youssef added: “The various investment sectors witnessed during the year of the pandemic a calm to a large extent, and it was natural for everyone to turn with their deposits to banks, and since the beginning of the new year, and with the gradual return of life, these deposits will be re-injected into different types of investment.”

Coronavirus

For his part, CEO of the National Bonds Group, Muhammad Qasim Al-Ali, said that “despite the (Corona) pandemic that has struck the whole world, saving behavior in the UAE society has generally increased, due to the decline of many daily and consumer habits, such as going To shops and shopping centers to buy unnecessary things, or to exaggerate frequenting restaurants and cafes, and other daily habits, which are one of the direct effects that the spread of this virus was able to change, and therefore with the cessation of all that is not necessary and essential, the bill that the individual pays is less The burden on him, and thus the monthly cost to the consumer decreased, of course, and do not forget the decrease in rents in some areas, which helped raise the rates of deposits and savings in the country.

Al-Ali added, "The increase in savings rates was reflected in savings accounts in banks, and we also have in (National Bonds). Indeed, it maintained its annual growth pattern, as the amount of saved funds increased by 20% during the past year compared to the previous year."

He pointed out that the value of the money saved and invested in the speculative pool of the (company) rose to nearly eight billion dirhams at the end of 2020.

And he indicated that the banking sector in the UAE enjoys the confidence of customers, whether inside or outside the country, so the savings were directed to national containers, whether in banks or in "National Bonds".

• Savings deposits in state banks recorded, by the end of December, 215 billion dirhams.

• The growth of savings accounts deposits rose by 25% during the year of the "pandemic".

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