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Ain’t got no money in the bankMENA

Ain’t got no money in the bank

The UAE’s bank deposit figures for July 2021 just came in yesterday, courtesy of the UAE Central Bank (CBUAE), and it looks like there’s a lot of cash out there sitting pretty. The CBUAE announced a $1.8b increase in bank deposits for July, over last month’s, which amounted to total deposits of $531b and a 0.3% increase.

The increase is primarily driven by a rise in non-resident deposits, which outpaced resident deposits by 220 basis points. As the UAE economy is on its way to recovery, the CBUAE also revised its forecasts for economic growth upwards – projecting a 4% increase in GDP this year.

why it matters

While higher deposits might indicate low spending, the economic recovery shows otherwise. Just a month ago, during the same period the deposits are concerned with, consumer spending in the UAE for Q2 2021 increased at a faster pace than in Q2 2019.