By: Mahmoud Gamal
Abu Dhabi – Mubasher: Banks operating in the UAE increased their investments in debt securities by 19.1% year-on-year or AED 30.1 billion by the end of April 2017, according to data released by the Central Bank of the UAE.
Investments reached AED 188.1 billion ($51.2 billion) by the end of April 2017, compared to AED 158 billion ($43 billion) in the prior-year period.
The banks seek to diversify their investment portfolios of fixed income, like interest rates generated from bonds, to be resilient to lower oil prices, economist Mohamed Al Zafiri told Mubasher.
The banks’ investments in debt securities rose 2.5% or AED 4.5 billion in April 2017, compared to AED 183.6 billion in March 2017.
UAE banks are expected to increase their investments in tools like Basel III-compliant securities to protect the sector and strengthen its stability.
Banks’ investments in stocks reached AED 12.1 billion in April 2017, a decline of 5.5% from AED 12.8 billion in the same period of last year. Investments in stocks declined 0.8% month-on-month.
Translated by: Julian Nabil
