Abu Dhabi (ArduPoint Network 03 March 2021 -) The surplus of the UAE’s commercial account in the financial services sector for banks with the countries of the world amounted to about 1.5 billion dirhams during the year 2019, according to the latest statistics issued by the Federal Center for Competitiveness and Statistics today. The state’s achievement of a financial surplus in this type of trade reflects the international leadership position that characterizes the UAE banking system.
It is noteworthy that all financial revenues achieved by banks in the country as a result of banking dealings with banks outside the state are classified under exports in services, while payments made by banks in the country to banks outside the country are classified within imports.
The surplus in banking financial services trade was achieved, according to the statistics of the Federal Competitiveness and Statistics Center, after the outcome of local banks’ transactions with their counterparts in all countries of the world resulted in an increase in the value of their exports to 22.
Approximately 7 billion dirhams during the year 2019, compared to imports of 21.7 billion dirhams in the same year.
The UAE banking system ranks among the most powerful and financially solvent in the Middle East, with its total assets exceeding 3.18 trillion dirhams according to the latest figures issued by the Central Bank.
Many international credit rating institutions have granted the UAE banks distinctive ratings, including Fetch Agency, which, during the year 2020, has confirmed the creditworthiness of 4 national banks in the long and short term.
According to international financial and accounting standards, the credit rating or creditworthiness reflects the ability of a country or an institution to pay its debts, provided that the classification process is based on complex economic and accounting standards, the most important of which is profitability, assets, assets, financial flows, and other other indicators.
Returning to the details of the statistics of the Federal Center for Competitiveness and Statistics, the value of the amounts collected according to the margins for the purchase and sale of transactions amounted to 14.868 billion dirhams, constituting 65.48% of the total exports of financial services to banks during the year 2019, while the value of explicit fees amounted to 7.821 billion dirhams, and the rest of the amount came from Income-derived asset management costs.
As for the level of imports from banks’ financial services, the value of the amounts from the margins for the purchase and sale of transactions amounted to 14.876 billion dirhams, constituting 70.25% of the total imports of this type of services trade, while the value of express fees amounted to 6.291 billion dirhams, or 29.71% of the total value of imports.