Gross assets for UAE banks exceeded AED4.2 trillion ($1.14 trillion) by the end of February 2024 for the first time in history, according to the latest statistics from the Central Bank of the UAE (CBUAE).
The central bank reported an increase in total banking assets, including bank acceptance certificates, on an annual basis by about AED 450.2 billion, with growth exceeding 12 percent, compared to about AED3.748 trillion during February 2023.
Total UAE banks’ assets saw a 2.2 percent monthly increase to AED4.198 trillion at the end of February 2024, compared to about AED4.109 trillion in January.
Expansion of gross credit and bank deposits
Gross credit in UAE banks saw a 0.9 percent monthly increase to AED2.014 trillion in February. CBUAE attributes this growth to a 1.1 percent increase in domestic credit, overshadowing the 0.6 percent decline in foreign credit. Government sector credit grew 5.5 percent while public sector credit grew 0.2 percent. Moreover, private sector and on-banking financial institutions’ credit saw a 0.6 percent and 1.7 percent increase, respectively.
The CBUAE also revealed a 2.7 percent increase in total deposits across UAE banks, increasing from AED2.540 trillion in January 2024 to AED2.608 trillion in February. The report attributes the deposit growth to a 2.5 percent increase in resident deposits and a 5 percent increase in non-resident deposits.
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Expansion of monetary base and money supply
UAE banks’ monetary base expanded 2.7 percent monthly to AED688.7 billion in February. That is due to a 3.1 percent increase in currency issuances, a 1.2 percent increase in reserve accounts, and a 6.7 percent increase in monetary bills and Islamic certificates of deposit. This overshadowed the decline in banks’ and OFCs’ current accounts and overnight deposits of banks at CBUAE by 4.0 percent.
CBUAE also revealed that money supply (M1) saw a 2 percent increase to AED847.0 billion in February. Meanwhile, money supply (M2) increased by 3.8 percent to AED2.105 trillion at the end of February 2024. Moreover, money supply (M3) saw a 2.3 percent increase to to AED2.535 trillion at the end of February 2024.
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