The Central Bank of the UAE (CBUAE) announced on Monday that gross banks’ assets, including bankers’ acceptances, increased by 2.7 percent from AED4.75 trillion ($1.29 trillion) at the end of April 2025 to AED4.878 trillion ($1.33 trillion) at the end of May 2025.
The CBUAE also announced an increase in money supply aggregate M1 by 0.4 percent, from AED1.012 trillion in April 2025 to AED1.0156 trillion in May 2025. The increase was due to a AED3.4 billion growth in monetary deposits, and a AED0.3 billion increase in currency in circulation outside banks.
Monetary base expands to AED836.7 billion
In its Monetary & Banking Developments for May 2025, the CBUAE said that the money supply aggregate M2 increased by 1.6 percent, from AED2.4356 trillion at the end of April 2025 to AED2.474 trillion at the end of May 2025. M2 increased due to an elevated M1, and a AED34.7 billion increase in Quasi Monetary Deposits.
In addition, the money supply aggregate M3 increased by 1.7 percent, from AED2.898 trillion at the end of April 2025 to AED2.948 trillion at the end of May 2025. M3 increased due to the growth in M2, and a AED11.5 billion increase in government deposits.
The UAE’s monetary base also increased by 2.2 percent, from AED819.0 billion at the end of April 2025 to AED836.7 billion at the end of May 2025.
The increase in the monetary base was driven by increases in: currency issued by 2.1 percent, reserve account by 29.2 percent, and in monetary bills & Islamic certificates of deposit by 6.6 percent, overriding the decrease in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 48.8 percent.
Read: MENA records 425 M&A deals worth $58.7 billion in H1 2025, highest in 5 years
Gross credit grows to AED2.2934 trillion
The CBUAE’s latest report also revealed that gross credit increased by 1.5 percent from AED2.2594 trillion in April 2025 to AED2.2934 trillion at the end of May 2025. Gross credit increased due to the combined growth in domestic credit by AED7.1 billion and foreign credit by AED26.9 billion.
The growth in domestic credit was due to increases in credit to the government sector by 2.0 percent and private sector by 0.8 percent, while credit to the public sector decreased by 2.4 percent, and non-banking financial institutions decreased by 2.5 percent.
Meanwhile, UAE banks’ deposits increased by 1.8 percent, from AED2.9654 trillion at the end of April 2025 to AED3.0185 trillion at the end of May 2025.
The increase in bank deposits was driven by the growth in resident deposits by 1.9 percent, settling at AED2.741 trillion, and in non-resident deposits by 0.6 percent, reaching AED277.2 billion. Within the resident deposits, government sector deposits increased by 3.4 percent, private sector deposits increased by 1.9 percent, and government-related entities’ deposits increased by 1.3 percent, while non-banking financial institutions’ deposits decreased by 6.1 percent in May 2025.
