The Federal Center for Competitiveness and Statistics revealed that the total trade of UAE banks, from financial services, amounted to 43 billion and 884 million dirhams, during the year 2019.
The center stated, in a recent comprehensive survey, and announced its results yesterday, that banks’ exports of financial services in the country exceeded imports by more than one billion and 532 million dirhams, indicating that this is an indication of the strength of the banking system and its high financial solvency, as the value of bank exports reached The state’s financial services amounted to 22 billion and 708 million dirhams, while the value of bank imports amounted to 21 billion and 176 million dirhams.
The center indicated that state banks’ exports of financial services include all amounts that are deducted as compensation for each service provided abroad, while bank imports include amounts that are paid in exchange for services provided by a third party to UAE banks.
UAE banks’ financial services trade includes: explicit fees, margins for buying and selling currencies, and income-derived asset management costs.
The center added that the margins for buying and selling currencies accounted for 14 billion and 868 million dirhams, of the total exports of local banks of financial services abroad, by 65.4% of total exports, while express fees accounted for 7 billion and 821 million dirhams, of the total exports of state banks, a rate of 34.4%. While the costs of managing assets derived from income came third, with a value of 19 million dirhams from exports, and took the remaining percentage.
State bank exports included, from the margins for buying and selling currencies: exchange transactions for non-residents, stocks, bonds, banknotes, derivatives, and other financial instruments.
Financial derivatives acquired 13 billion and 667 million dirhams, by 92%, followed by non-resident exchange transactions with a value of one billion and 141 million dirhams, 7.7% of the total, then bonds with a value of 49 million dirhams, or 0.3%.
As for the banks’ exports of explicit fees, they included: letters of credit, bank acceptances, credit limits, financial leasing, money transfer and exchange transactions for non-residents, in addition to brokerage and issuance of issues and subscriptions, as well as fees for financial derivative contracts, fees for commodity futures contracts, financial market operations and regulatory services.
Fees of financial derivative contracts accounted for most of the exports, with a value of six billion and 55 thousand dirhams.
One billion dirhams, banks’ exports of financial services.
Exports include the amounts that are withheld, as consideration for each service provided by banks abroad.
Imports include amounts paid for services provided by a third party to UAE banks.
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