Dirham-denominated deposits at the UAE Central Bank increased to a five-year high of AED497.65 billion by the end of July 2017, according to UAE Central Bank figures.

The first seven months of 2017 recorded an increase of AED17.1 billion in local currency balance, which is the highest level since 2013.

Market analysts attributed the growth to growing investors' trust in the local currency comparatively with other currencies in addition to the decent interest return secured for short, medium and long-term deposits.

The month of May witnessed the highest activity, recording AED10 billion in local currency deposits, brining to AED492.2 billion the total local currency balance in UAE banks against AED484.2 billion in April 2017.

Deposits decreased by AED3.6 billion to AED490.5 billion in June before rising back in July to AED497.65 billion.

Foreign currency-denominted deposits remained stable at an equivalent of AED269.2 billion against AED270 billion by the end of 2016.