Photo Credit: X/@centralbankuae
Dubai, UAE — November 2025 — The UAE’s gross banks’ assets saw a 2.2 percent increase, rising from AED 5,087.0 billion at the end of August to AED 5,199.9 billion by the end of September.
According to the Central Bank of the UAE’s report on Monetary & Banking Developments for September 2025, the money supply also saw broad growth.
The Emirates News Agency reported that the aggregate M1 increased by 0.4 percent, from AED 1,028.7 billion to AED 1,032.7 billion, a change driven by a 1 percent rise in currency in circulation outside banks and a 0.3 percent increase in monetary deposits.
Meanwhile, the money supply aggregate M2 grew by 1.0 percent, from AED 2,562.9 billion to AED 2,589.3 billion, primarily due to a AED 22.4 billion expansion in Quasi-Monetary Deposits.
The M3 aggregate also increased by 1.4 percent, climbing from AED 3,079.5 billion to AED 3,123.3 billion, which was attributed to the rise in M2 amplified by a further AED 17.4 billion increase in government deposits.
In contrast, the monetary base contracted by 2.5 percent, falling from AED 854.1 billion to AED 832.5 billion. This decline was driven by an 8.9 percent decrease in the reserve account, which surpassed increases in currency issued, banks’ current accounts and overnight deposits at the CBUAE, and monetary bills and Islamic certificates of deposit.
The report also highlighted a significant 2.5 percent expansion in gross credit, which grew from AED 2,417.3 billion to AED 2,478.8 billion. This was a result of combined growth in domestic credit, which increased by AED 43.9 billion, and foreign credit, which rose by AED 17.6 billion.
The domestic credit growth was fueled by increases in credit to the government sector, the public sector, the private sector, and non-banking financial institutions.
Finally, banks’ deposits grew by 1.8 percent, from AED 3,128.5 billion to AED 3,186.0 billion. This growth was driven by a 14.5 percent surge in non-resident deposits, which reached AED 294.6 billion, alongside a 0.7 percent rise in resident deposits to AED 2,891.4 billion.
Within resident deposits, holdings from the government sector and government-related entities decreased by 0.5 percent and 0.1 percent, respectively, while private sector deposits increased by 0.7 percent and non-banking financial institutions’ deposits grew significantly by 13.8 percent.
