Gross banks’ assets reach AED4,878.3 billion at end of May 2025: CBUAE

The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 0.4%, from AED1,011.9 billion at the end of April 2025 to AED1,015.6 billion at the end of May 2025. The increase was due to AED3.4 billion growth in monetary deposits, and AED0.3 billion increase in currency in circulation outside banks.

In its Monetary & Banking Developments for May 2025, the CBUAE said that the money supply aggregate M2 increased by 1.6%, from AED2,435.6 billion at the end of April 2025 to AED2,474.0 billion at the end of May 2025. M2 increased due to an elevated M1, and AED34.7 billion increase in Quasi Monetary Deposits.

The money supply aggregate M3 increased by 1.7%, from AED2,898.2 billion at the end of April 2025 to AED2,948.1 billion at the end of May 2025. M3 increased due to the growth in M2, and AED11.5 billion increase in government deposits.

The monetary base increased by 2.2%, from AED 819.0 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%, reserve account by 29.2%, and in monetary bills & Islamic certificates of deposit by 6.6% overriding the decrease in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 48.8%.

Gross banks’ assets, including bankers’ acceptances, increased by 2.7% from AED 4,749.8 billion at the end of April 2025 to AED 4,878.3 billion at the end of May 2025.

Gross credit increased by 1.5% from AED2,259.4 billion at the end of April 2025 to AED2,293.4 billion 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%, private sector by 0.8%, while credit to the public sector (government-related entities) decreased by 2.4%, and non-banking financial institutions decreased by 2.5%.

Banks’ deposits increased by 1.8%, from AED2,965.4 billion at the end of April 2025 to AED3,018.5 billion at the end of May 2025. The increase in bank deposits was driven by the growth in resident deposits by 1.9%, settling at AED2,741.3 billion and in non- resident deposits by 0.6%, reaching AED277.2 billion. Within the resident deposits; government sector deposits increased by 3.4%, private sector deposits increased by 1.9%, and government-related entities deposits increased by 1.3%, while non-banking financial institutions deposits decreased by 6.1% by the end of May 2025.