The total assets of finance companies that are classified in the list of non-financial institutions in the UAE amounted to 37.3 billion dirhams during the year 2019, which constitutes 1.2% of the total assets of the banking system in the country, according to the statistics of the UAE Central Bank.
Total assets of financing companies / 22 companies / represent about 2.4% of nominal GDP and 3.2% of nominal non-oil GDP, according to the statistics of the Federal Competitiveness and Statistics Authority and the Central Bank at the end of last year.
During the year 2018, the Central Bank issued a new regulation for finance companies, specifying a period of three years for its implementation, and indeed, 67% of financing companies had achieved compliance with the new requirements by the end of 2019.
The Central Bank expects that the mergers in the banking sector will reduce the number of financing companies during the coming stage.
Banks owned about 29.6% of the total assets of financing companies in the UAE during the year 2019, while 70.4% of these companies’ assets were owned by other entities, according to the statistics of the UAE Central Bank.
Loans remained the main component of assets for finance companies, accounting for 59.7% of total assets in 2019, followed by cash, deposits, investments, fixed assets and other assets.
In terms of capital adequacy, the capital to assets ratio in the finance companies sector increased in 2019 to 38.5%, compared to 37.1% in 2018.
It is noteworthy that the non-banking financial institutions sector in the UAE consists of finance and investment companies, in addition to insurance companies and pension funds.
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