Total capital and reserves of banks operating in the country increased by about 48 billion dirhams or 11.8% year-on-year to reach 454.9 billion dirhams at the end of last July, compared to about 406.9 billion dirhams at the end of July 2022. .

The central bank said in its monthly report that banks’ total capital and reserves increased by about 6.14%, or the equivalent of 26.3 billion dirhams, in the first seven months of the year, compared to 428.6 billion dirhams at the end of December. Last year, it grew by 1.6% on a monthly basis, compared to 447.8 billion dirhams. One billion dirhams last June.

The central bank explained that banks’ capital and reserves do not include loans and secondary deposits, but they also include profits for the current year.

According to the central bank, national banks account for about 86.4% of the total capital and reserves of banks operating in the country, and their value reached 392.9 billion dirhams at the end of last July, an increase of 12% on a year-on-year basis. About 350.8 billion dirhams in July 2022.

The share of foreign banks reached 13.6% of the total capital and reserves of banks operating in the country, and their value reached 62 billion dirhams at the end of last June, an increase of about 10.5% compared to 56.1 billion on a year-on-year basis. Dirhams in July 2022.

The central bank pointed out that the capital and reserves of banks in the Emirate of Dubai reached 219.8 billion dirhams at the end of last July, a year-on-year growth of 12.9%. 200.2 billion dirhams, an annual increase of 10.8%, and capital and reserves of banks in other emirates reached about 34.9 billion dirhams, an increase of 10.4% year-on-year. The capital and reserves of conventional banks in the country stood at about 380.8 billion dirhams at the end of last July, an increase of 12% year-on-year, while the capital and reserves of Islamic banks stood at about 74.1 billion dirhams. About 10.8% on annual basis.

Arab countries account for 60% of global Islamic finance

Dr. Abdul Rahman bin Abdullah Al-Humaidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, said, “Arab countries make up 60% of the global Islamic finance sector, which is three. trillion dollars by the end of 2021.

Al-Humaidi added that he launched a distance learning course on “Accounting Standards for Islamic Financial Institutions” in collaboration with the Islamic Development Bank. Element in keeping pace with this industry and its growth and development.

Setting accounting standards for Islamic financial institutions helps to support the development of the industry, achieve calibration and harmonization between Islamic financial practices among Arab countries or practices in Arab countries and international practices, and leads to transparency of accounting disclosure. , reliability and validity of financial statements, and simplify the work of companies. In view of the challenges faced by Islamic finance in the application of international accounting standards due to the uniqueness of its work.