(MENAFN - Khaleej Times) Trade balance meanwhile climbs to dh503.
the net outflow of capital transfer by the uae’s private sector increased from dh30.8 billion in 2012 to dh44.8 billion in 2013. — kt file photo
higher remittances by workers rise in expenses on travel shipping and other services had a negative impact on the uae’s surplus current account balance which fell six per cent in 2013 to dh237 billion.
according to the central bank of the uae’s annual report for 2013 “the outflow of funds due to services which include freight and insurance transport travel and government services increased to dh260.7 billion in 2013 while the inflow increased to dh63.3 billion in 2013. during the same period employees’ transfers abroad increased from dh52.9 billion in 2012 to dh65.9 billion in 2013” it said.
as a result the surplus in the current account balance shrunk from dh253.3 billion in 2012 to dh237.5 billion in 2013 the annual report said.
however higher oil proceeds boosted the uae’s trade balance to dh503.7 billion in 2013 the report added.
oil exports showed a rising trend by dh11.0 billion to dh451.6 billion an increase in non-hydrocarbon exports by dh42.2 billion to dh396.4 billion and an increase in re-exports by dh53.9 billion to dh542.6 billion in 2013 showed rise in economic activity the report released on thursday said.
meanwhile total imports increased by dh88.2 billion.
the balance of services remained negative during this period with a deficit increasing from dh176.6 billion in 2012 to dh197.4 billion in 2013 as the outflow of funds due to freight and insurance transport travel and government services rose from dh231.9 billion in 2012 to dh260.7 billion in 2013 while the inflow increased from dh55.3 billion in 2012 to dh63.3 billion in 2013 the uae central bank data showed.
the net balance of the financial account was negative dh145.8 billion in 2012 and negative dh163.7 billion in 2013 indicating a net outflow of capital from the uae during this period.
the net outflow of capital transfer by the private sector increased from dh30.8 billion in 2012 to dh44.8 billion in 2013 while the public sector net transfers abroad increased from dh115.0 billion in 2012 to dh118.9 billion in 2013.
as a result of these developments the overall position of the balance of payments remained in surplus reaching dh77.3 billion in 2013.
the balance sheet of the uae central bank expanded by 16.6 per cent in 2013 with total assets increasing dh305.8 billion at the end of 2013. this was mainly the result of an increase in central bank ‘deposits’ by dh56.3 billion and in ‘held-to-maturity foreign bonds’ by dh33.3 billion while ‘cash & bank balances’ dropped dh10.8 billion and ‘held-to-maturity bonds issued’ by the ministry of finance fell dh34.8 billion.
on the liabilities side ‘current accounts and deposits’ of banks at the central bank increased by dh25.5 billion during 2013 and banks’ balance of ‘certificates of deposit’ issued by the central bank increased by dh12.5 billion.
the central bank’s balance of foreign currency assets which include dubai government bonds worth dh36.7 billion increased by 37.8 per cent during 2013 reaching dh282.9 billion at the end of the year.
this was mainly due to an increase in central bank’s ‘investments abroad in highly rated securities government bonds and treasury bills’ by dh33.3 billion an increase in ‘deposit account cash with banks abroad and loans to banks against certificates of deposit’ by dh42.2 billion.
bank deposits increased by 9.5 per cent year-on-year to dh1.278.9 trillion at the end of 2013 total bank loans advances and overdrafts soared 7.1 per cent year-on-year to dh1.177 trillion at the end of 2013.
bank loans to the real estate sector grew 13.2 per cent during 2013 reaching dh287.3 billion at the end of the year while bank loans to the companies increased by 17.1 per cent reaching dh462.7 billion bank loans to the government increased by 18.6 per cent reaching dh145.4 billion and total personal loans increased by 7.1 per cent reaching dh279.5 billion at the end of 2013.
the total assets of banks operating in the uae increased by 13.1 per cent year-on-year to dh2.025 trillion at the end of 2013.