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Abu Dhabi banks invested AED26.1 bn in debt securities during 2020, bringing to AED208.6 bn their cumulative investments in this key investment vehicle by December's end, 2020, statistics by the Central Bank of the United Arab Emirates have shown.
Debt securities are financial assets that entitle their owners to a stream of interest payments. Bonds, such as government bonds, corporate bonds, municipal bonds, collateralized bonds, and zero-coupon bonds, are a common type of debt security. Investing in securities is one of the most popular forms of investment in the UAE banking sector, given the guaranteed proceeds and lack of risk, compared to other investment instruments.
According to the apex bank, UAE banks' total investment in debt securities comprise 63.7 percent of their total balance in their investment vehicles, which include, equities, held-to-maturity bonds, etc.
The bank’s statistics showed that Abu Dhabi banks have adopted a clear strategy for investing in debt securities, leading to a continuous growth in this type of investment from January to December 2020.
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