The Central Bank of the UAE (CBUAE) has reported a 1.9% monthly increase in gross bank assets, reaching AED4.72 trillion ($1.285 trillion) by the end of March 2025. The rise, which includes bankers’ acceptances, reflects a resilient financial sector marked by steady credit expansion and robust deposit growth.
According to the latest figures, the growth in gross credit—up 1.6% month-on-month to AED2.24 trillion—was fueled by increases in both domestic and foreign lending. Domestic credit rose by AED19.5 billion, driven by higher disbursements to the private sector (1.4%), public sector (0.2%), and non-banking financial institutions (1.9%). Credit to the government sector declined by 0.3%. Foreign credit increased by AED16.2 billion.
Key Money Supply Indicators Rise
CBUAE data showed an upward trend across all three monetary aggregates:
- M1 grew by 0.4%, reaching AED986.2 billion. This was attributed to a AED5.1 billion rise in currency in circulation outside banks, which outweighed a AED1.4 billion drop in monetary deposits.
- M2 rose by 3.3%, from AED2.36 trillion in February to AED2.44 trillion in March. This increase was supported by growth in M1 and a significant AED73.8 billion jump in quasi-monetary deposits.
- M3 increased by 2.9% to AED2.89 trillion, driven by the rise in M2 and an additional AED4.5 billion in government deposits.
Meanwhile, the UAE’s monetary base climbed by 2.0% month-on-month to AED833.1 billion. The uptick was led by a 4.1% rise in currency issuance and a striking 62.0% increase in the reserve account, which offset declines in banks’ overnight deposits (down 64.2%) and Islamic certificates of deposit (down 6.3%).
Deposits Show Strong Momentum
Bank deposits increased by 2.3% month-on-month, totaling AED2.94 trillion in March. Resident deposits rose by 2.4% to AED2.69 trillion, while non-resident deposits edged up by 0.4% to AED248.6 billion.
Within resident deposits:
- Government-related entities posted a 4.3% increase.
- Private sector deposits climbed by 3.1%.
- Non-banking financial institutions saw a 5.1% rise.
- Government deposits, however, declined by 2.3%.
These trends underscore the growing confidence in the UAE’s banking system and reflect ongoing liquidity support from the central bank as the nation pursues its broader economic diversification agenda.
