UAE banking sector assets exceed AED 5 trillion by the end of July

 

 

UAE banking sector assets exceeded AED 5 trillion by the end of July               
             

 UAE banking sector assets exceed AED 5 trillion by the end of July

Total banking assets in the UAE increased by 1% to exceed AED 5.024 trillion by the end of July 2025, compared to approximately AED 4.973 trillion at the end of the previous June, according to the Monetary and Banking Developments Report for July, issued today, Monday, by the Central Bank of the UAE.

The data showed a 1.4% increase in total credit, from approximately AED 2.334 trillion at the end of June to exceed AED 2.366 trillion at the end of July 2025. The growth in total credit was attributed to an increase of AED 21 billion in domestic credit and AED 10.9 billion in foreign credit.

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Bank Deposits

The increase in domestic credit was driven by a 5.2% increase in credit to the government sector, a 1.5% increase in the public sector (government-related entities), a 0.5% increase in the private sector, and a 2.5% increase in non-banking financial institutions. Total bank deposits increased by 1.1% from approximately AED 3.045 trillion at the end of June to exceed AED 3.08 trillion at the end of July 2025, supported by a 1.1% increase in resident deposits to AED 2.82 trillion, and a 1% increase in non-resident deposits to AED 259.7 billion.

Among resident deposits, government sector deposits grew by 2.9%, government-related entities deposits by 5%, and private sector deposits by 0.7%. Meanwhile, deposits of non-bank financial institutions declined by 11.1% at the end of July compared to the previous June. According to the Monetary and Banking Developments Report, the monetary base increased by 0.5% from AED 860 billion at the end of June to AED 864 billion at the end of July 2025.

The increase in the monetary base was due to a 44.5% increase in current accounts of banks and other financial institutions and overnight deposits with the Central Bank, and a 12.9% increase in banknotes and Islamic certificates of deposit. This outweighed the 2.6% decrease in outgoing currencies and the 24.9% decrease in the reserve account.

The aggregate money supply (M1) increased by 0.3% from AED 1.026 trillion at the end of June to AED 1.029 trillion at the end of July. This increase was due to a AED 6.8 billion increase in cash deposits, which outweighed a AED 3.5 billion decrease in currency in circulation outside banks. M2 money supply increased by 0.6% from AED 2.531 trillion at the end of June to exceed AED 2.546 trillion at the end of July 2025, driven by an increase in M1 money supply and an increase in quasi-monetary deposits of AED 12.4 billion.

Similarly, M3 money supply increased by 0.8% from approximately AED 2.997 trillion at the end of June to exceed AED 3.022 trillion at the end of July. This expansion was attributed to the growth in M2 money supply, supported by an AED 8.2 billion increase in government deposits.

Foreign Assets

Furthermore, the Central Bank's foreign assets reached AED 969 billion at the end of July, compared to AED 969.3 billion at the end of the previous June. The Central Bank's foreign assets at the end of July were distributed as follows: AED 333.8 billion in balances and deposits with banks abroad, AED 583.7 billion in foreign securities, and AED 51.5 billion in other assets.

The Central Bank's balance sheet amounted to approximately AED 1.003 trillion, distributed among liabilities and capital: AED 480 billion in current accounts and deposit accounts, AED 290 billion in Islamic bills and certificates of deposit, AED 63.81 billion in issued banknotes and coins, AED 25.6 billion in other liabilities, and AED 44.4 billion in capital and reserves

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As for the Central Bank's balance sheet - assets category, it was distributed among AED 178.5 billion in cash and bank balances, AED 170.7 billion in deposits, AED 610.4 billion in investments, AED 0.1 billion in loans and advances, and AED 44.1 billion in other assets.