By: Mahmoud Gamal
Abu Dhabi – Mubasher: Banks operating in the UAE have raised their holdings of government bonds by 10.45% year-on-year, or AED 19.9 billion, the Central Bank of the UAE’s (CBUAE) data showed.
Bank investments in the GCC nation's public bonds amounted to AED 210.2 billion ($57.23 billion) by the end of May, compared to AED 190.3 billion ($51.80 billion) in the same month a year earlier, the bank added.
Diversifying investment portfolios
Lenders in the Gulf nations aim at diversifying their investment portfolios from fixed income instruments in a bid to face the slippage of the global oil prices, capital market analyst Basel Abu Teima told Mubasher.
The UAE banks are planning to boost their investments in public debt notes in line with the introduction of Basel III guidelines which secure the banking sector and enhance its stability, Abu Teima added.
On a monthly basis, banks’ investments in government bonds shed 0.4% to AED 900 million in May, from AED 211.1 billion in the month before, according to the central bank's data.
Banks’ investments in stocks
The lenders' investments in equities rose 1.6% to AED 12.5 billion in the fifth month of this year, compared to AED 12.3 billion the prior-year period.
