Surplus reserves at UAE banks and other financial institutions surged to Dh42.8 billion ($11.6 billion) by the end of June, a growth of 77.6 per cent, or Dh18.7 billion, from Dh24.1 billion in the first month of the year 2017, according to UAE Central Bank statistics.

The figures reflect the resilience of the UAE banks' solvency position, not only at the level of the Gulf region but rather all over the Middle East, according to banking experts, reported Wam, the official Emirates news agency.

They explained that the strength of the UAE banking sector has enabled it to consolidate its financial reserves despite slower growth in regional and global economy, highlighting the high investment returns provided by the UAE economy as one of the banking sector's several strengths comparatively with other banks in the region.

Surplus reserves at the Central Bank typically represent an additional source of income that generates annual returns for traditional banks and consequently maximise their revenues.

Since the beginning of 2017, surplus reserves at banks and financial institutions posted continual growth, rising from Dh24.1billion to Dh28.2 billion by the end of February, climbing to Dh36.2 billion in March, according to the latest financial survey issued by the UAE Central Bank. In April, they declined to Dh28.3 billion before rebounding to Dh35.9 billion in May and going up further to Dh42.8 billion in June.

The two months of February and March saw record highs with banks' surplus reserves rising by Dh8 billion from Dh7.6 billion in April and May.