The UAE Central Bank (CBUAE) reported a 1.3% increase in total banks’ assets, including bankers’ acceptances, reaching AED 4.456T at the end of October 2024, up from AED 4.4T in September 2024.
The “Monetary & Banking Developments – October 2024” report revealed a 0.6% rise in gross credit, from AED 2.1619T in September 2024 to AED 2.1748T in October 2024. This was driven by a 0.6% increase in domestic credit and a 0.7% rise in foreign credit.
Domestic credit growth resulted from a 0.2% increase in government sector credit, 3.0% in public sector entities, and 0.1% in private sector credit, though non-banking financial institutions saw a 1.8% decline.
Bank deposits rose by 1.5%, from AED 2.7614T in September 2024 to AED 2.8025T in October 2024. This was attributed to a 1.2% growth in resident deposits and a 4.7% increase in non-resident deposits. Resident deposits grew due to increases in government sector deposits (2.3%), government-related entities (3.6%), and private sector deposits (1.1%), offsetting a 13.0% decrease in non-banking financial institutions’ deposits.
Money supply aggregate M1 increased by 1.5%, from AED 896.3B to AED 909.9B, largely driven by a AED 14.9B rise in monetary deposits. M2 grew by 0.9%, from AED 2.2496T to AED 2.2707T, and M3 saw a 1.3% increase, from AED 2.7198T to AED 2.7547T, mainly due to M2 and a AED 13.8B rise in government deposits.
The monetary base slightly decreased by 0.1%, from AED 743.5B to AED 743.0B, mainly due to an 11.4% drop in banks’ current accounts and overnight deposits at the CBUAE.