UAE Banking Sector Records AED3.4 Trillion in Fund Transfers as Activity Levels Soar
The UAE's banking sector has witnessed a notable surge in domestic fund transfers during the initial months of 2025, with total transaction values escalating by 15.5% year-on-year to reach an impressive AED 3.4 trillion, according to data disclosed by the Central Bank of the UAE (CBUAE).
Bank-led transfers spearheaded the growth, accounting for AED 2.093 trillion between January and February alone. The former month witnessed transactions worth AED 1.1 trillion, while the latter recorded a significantly high AED 983.99 billion. Individual and institutional transfers also demonstrated notable momentum, accumulating to AED 1.327 trillion over the two-month period.
Cheque usage remained robust, with 3.875 million cheques processed through the Image Cheque Clearing System (ICCS) at a combined value of AED 234.64 billion—a slight increase from the AED 216.218 billion processed during the same period the previous year. February saw 1.828 million cheques worth AED 116.165 billion circulating, while January accounted for the majority with 2.047 million cheques valued at AED 118.475 billion.
Cash activity via the Central Bank remained dynamic, with withdrawals amounting to AED 41.131 billion, and deposits totaling AED 31.115 billion over the two-month period.
Investments within the banking sector continued to expand, increasing by 2.1% in February and 3.1% since the beginning of the year.Total investments surpassed AED 758.5 billion by the end of February, up from AED 742.9 billion in January and AED 735.6 billion at the end of 2024.
This significant rise in domestic fund transfers underscores the UAE's robust financial momentum at the start of 2025, indicating considerable participation from both institutional and individual sectors, as well as steady investment growth across the industry.
The UAE's thriving economy, particularly its non-oil sectors, coupled with the growth of fintech innovation, government initiatives, and supportive regulatory policies, likely contribute to this marked enhancement in banking activities. This fledgling year appears to bring optimism to the country's financial landscape, setting a promising stage for continuous growth and development.
The surge in investment within the banking sector, with a 3.1% growth since the beginning of the year, suggests steady investment growth across the industry. The UAE's robust financial momentum is also evidenced by the notable participation of both institutional and individual sectors in domestic fund transfers, which increased by 15.5% year-on-year in the banking sector.
