Dubai, UAE — March 2026 — New data from the Central Bank of the UAE revealed a positive trajectory for the nation’s financial sector, marked by broad-based growth in assets, credit, and money supply at the start of the year.
According to the data carried by the Emirates News Agency, the total gross assets of banks in the UAE saw a steady increase, rising by 1.4 percent from AED 5,339.9 billion at the end of December 2025 to AED 5,413.6 billion by the end of January 2026.
This expansion was underpinned by a notable rise in gross credit, which grew by 1.1 percent over the same period, climbing from AED 2,570.3 billion to AED 2,598.2 billion.
The Central Bank’s report highlighted that this credit growth was largely fueled by a AED 27.9 billion increase in domestic credit, driven primarily by a 0.6 percent rise in lending to the private sector and a 2.5 percent increase in credit to the government sector.
While credit to other financial corporations experienced a decline of 5.7 percent, its impact on the overall growth was minimal.
The banking sector’s deposit base also expanded, growing by 0.9 percent to reach AED 3,336.8 billion by the end of January. This increase was spearheaded by a 1.2 percent rise in resident deposits, which totaled AED 3,046.1 billion.
Within this category, private sector deposits grew by 1.0 percent to AED 2,272.8 billion, while government-related entities deposits saw a significant increase of 3.5 percent, reaching AED 306.7 billion.
Government sector deposits also rose by 2.0 percent to AED 401.3 billion. The upward trend was slightly tempered by a 2.4 percent decline in non-resident deposits and a 6.7 percent drop in deposits from other financial corporations.
The CBUAE’s report further detailed broad-based growth across all key money supply aggregates.
The narrow money supply, M1, increased by 0.9 percent to AED 1,081.3 billion, supported by a 2.7 percent rise in currency in circulation outside banks and a 0.6 percent increase in monetary deposits.
The broader M2 aggregate grew by 1.3 percent to AED 2,789.8 billion, driven by a AED 25.3 billion expansion in quasi-monetary deposits.
Notably, corporate and individual deposits each contributed equally to this growth, with monthly increases of 0.9 percent and 1.5 percent, respectively.
GRE deposits also played a key role, rising by 3.6 percent, though the overall M2 growth was moderated by a 7.1 percent monthly decline in OFC sector deposits.
The widest measure of money, M3, recorded a 1.4 percent increase, rising to AED 3,301.5 billion. This growth was supported by a 2.2 percent monthly increase in government sector deposits, which reached AED 511.7 billion.
Finally, the monetary base—the foundation for all money supply—grew by 0.6 percent to AED 900.8 billion, propelled by a substantial 32.4 percent surge in reserve requirements and a 1.7 percent increase in currency issued, despite a decline in banks’ current accounts and overnight deposits.
