The Central Bank of the UAE (CBUAE) reported that gross banks’ assets, including bankers’ acceptances, increased by 0.5% from AED 4.287T in May 2024 to AED 4.310T in June. Gross credit also rose by 1.1%, driven by a 0.8% increase in domestic credit and a 2.9% rise in foreign credit.
Domestic credit growth came from a 1.4% increase in public sector credit and a 1.0% rise in private sector credit, offsetting decreases in government sector and non-banking financial institution credit. Bank deposits rose by 0.5%, largely due to an 8.4% increase in non-resident deposits, despite a slight dip in resident deposits.
In June 2024, money supply aggregates M1, M2, and M3 increased, mainly due to higher monetary deposits. However, the monetary base contracted by 0.3%, driven by reductions in currency issued and deposits, despite a rise in the reserve account.
CBUAE’s foreign assets exceeded AED 770B for the first time, marking a 0.5% monthly increase and a 30% year-on-year rise. This growth was attributed to higher balances and deposits abroad, along with increased foreign securities. The central bank’s balance sheet grew 24.2% year-on-year, reaching AED 806.39B in June 2024.
