(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

The UAE Funds Transfer System saw a substantial surge in the value of transactions during the first five months of 2025, reaching a remarkable AED9.528 trillion. This reflects the continued growth of the UAE's banking sector and its central role in facilitating both domestic and international financial transfers.

According to the Central Bank of the UAE, the total value of transfers executed by banks amounted to AED5.963 trillion, a figure that highlights the significant volume of financial activities managed by UAE banks. These transfers are essential for business operations, both locally and globally, given the UAE's strategic position as a key financial hub in the Middle East.

The monthly breakdown reveals a steady increase in transaction values throughout the first five months of the year. January recorded AED1.1 trillion, February saw AED983.99 billion, while March's figures jumped to AED1.238 trillion. The upward trend continued into April with AED1.273 trillion, and May closed at AED1.089 trillion, suggesting robust financial momentum across the banking sector.

In addition to bank-to-bank transfers, customers also contributed significantly to the total volume. The total value of transfers executed by customers surpassed AED3.834 trillion. January recorded AED677.65 billion, with February following closely at AED649.48 billion. March saw a spike, reaching AED791.313 billion, while April's figures hit AED879.94 billion. By May, customer-initiated transfers amounted to AED836.157 billion, demonstrating the increasing role of personal and corporate banking in the country's financial ecosystem.

The UAEFTS, which facilitates secure and efficient transfers between financial institutions, plays a pivotal role in the country's economic framework. The consistent growth of these transactions reflects the ongoing strength of the UAE's banking infrastructure, which continues to cater to a diverse range of financial services, from basic retail banking to complex corporate transactions.

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One of the key drivers of this growth is the UAE's growing stature as a global financial centre. The country's strategic initiatives to position itself as an international financial hub have attracted a wide variety of global institutions. With its advanced technological infrastructure and regulatory framework, the UAE has positioned itself as a leader in financial services in the Gulf region.

The rise in customer transfers can be attributed to a range of factors, including the increasing integration of digital banking platforms. The shift towards online and mobile banking has made it easier for customers to conduct transfers in real-time, contributing to the overall growth in transaction volumes.

While the total value of transfers is substantial, it also highlights a key trend in the UAE's financial sector: the increasing reliance on electronic systems for everyday financial transactions. As customers continue to embrace digital banking solutions, the volume of these transactions is likely to rise, further reinforcing the UAE's reputation as a hub for innovation in financial technology.

The UAE's banking sector is also witnessing a diversification of services, with many institutions offering enhanced value-added services such as cross-border payment solutions, investment management, and wealth management. These services, which cater to both individual and corporate clients, contribute to the rise in transfer volumes, particularly in a market that has become increasingly open to global trade and investment.

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