Guarantees provided by the UAE-based banks in February  increased to Dh389.4 billion ($106 billion) from Dh388.98 billion in January, with industry reports expecting a further increase in the value of this facility in line with the current mobility recorded across different economic platforms, reported Emirates news agency Wam.

Industry analysts attribute the increase in the value of bank guarantees to the economic boom witnessed across all sectors, particularly the commercial platform, which is considered a main tributary to the national economy.

According to official statistics the bank guarantees in November 2017 amounted to around Dh389.4 billion, accounting for 10.1 per cent of the gross static account balances which stood at Dh3.826 trillion by the end of November 2017.

According to UAE Central Bank data, the end of 2017 saw a decline in bank guarantees during Q3 to Dh385.9 billion and to Dh384.47 in Q4.

A bank guarantee is a promise from a bank or other lending institutions that if a particular borrower defaults on a loan, the bank will cover the loss.