The Central Bank of the UAE (CBUAE) has confirmed that gross assets of banks operating in the country climbed by 1.9 percent, reaching AED 4,973.3 billion at the end of June 2025, compared with AED 4,878.3 billion in May.
Money Supply Trends
The regulator’s Monetary and Banking Developments Report for June 2025 showed broad-based expansion across money supply aggregates. M1 rose by 1.0 percent, from AED 1,015.6 billion in May to AED 1,026.2 billion in June, supported by a AED 1.7 billion increase in currency outside banks and an AED 8.9 billion boost in monetary deposits.
M2 grew at a faster pace of 2.3 percent, moving from AED 2,474.0 billion to AED 2,531.2 billion, driven by higher M1 and an additional AED 46.6 billion in quasi-monetary deposits. M3 advanced 1.7 percent to AED 2,997.6 billion, despite a AED 7.7 billion dip in government deposits, with the growth largely reflecting the stronger M2 position.
The monetary base also recorded an increase of 2.8 percent, climbing from AED 836.7 billion in May to AED 860.0 billion in June. Gains came mainly from a 6.8 percent rise in reserve accounts and a sharp 61.2 percent jump in current accounts and overnight deposits of banks at CBUAE, offsetting declines in currency issued (0.4 percent) and monetary bills and Islamic certificates of deposit (14.0 percent).
Lending and Credit Activity
Gross credit expanded by 1.8 percent, rising from AED 2,293.4 billion to AED 2,334.3 billion over the same period. The increase was attributed to a AED 22.5 billion gain in domestic lending and AED 18.4 billion growth in foreign credit. Within domestic credit, lending to the private sector advanced 2.1 percent, while credit to non-banking financial institutions jumped 4.6 percent. By contrast, credit to the government fell 0.4 percent and lending to government-related entities declined 2.3 percent.
Deposit Growth
Bank deposits in the UAE edged higher by 0.9 percent, reaching AED 3,045.8 billion at the end of June, compared with AED 3,018.5 billion in May. The increase came from a 1.7 percent rise in resident deposits, totalling AED 2,788.6 billion, which outweighed a 7.2 percent drop in non-resident deposits to AED 257.2 billion.
Among resident segments, deposits from the private sector rose 1.7 percent, those from government-related entities increased 2.3 percent, and non-banking financial institutions saw a substantial 26.7 percent gain. However, deposits from the government sector eased by 1.6 percent.
