CBUAE: Gross banks’ assets reach AED5,556.5 billion in Q1

May 14, 2026 / 11:56 PM

Sharjah 24 – WAM: The Central Bank announced a decrease in money supply aggregate M1 by 2.5%, from AED1,099.8 billion at the end of February 2026 to AED1,072.7 billion at the end of March 2026. The decrease was caused by a drop in monetary deposits by 4.0%, while currency in circulation outside banks rose by 6.9%.

M2 and M3 show mixed growth trends

The money supply aggregate M2 increased by 0.4% to AED2,869.3 billion, driven mainly by a AED39.6 billion rise in Quasi-Monetary Deposits, with Government Related Entities (GREs) deposits rising by 16.3%. However, corporate, individual, and other financial corporation deposits declined, partially offsetting growth. M3 increased by 1.6% to AED3,406.8 billion, supported by an 8.2% rise in government sector deposits.

Monetary base declines amid structural shifts

The monetary base decreased by 4.3% to AED879.5 billion, driven by declines in reserve requirements and monetary bills & Islamic certificates of deposit. However, banks and OFCs current accounts and overnight deposits rose by 32.7%, while currency issued increased by 8.9%, helping moderate the overall decline.

Growth in gross assets, credit, and deposits

Gross banks’ assets increased by 1.5% to AED5,556.5 billion, while gross credit rose by 2.5% to AED2,695.6 billion, driven mainly by domestic credit expansion across government, GREs, and the private sector. Banks’ deposits also increased by 1.4% to AED3,446.0 billion, supported by growth in resident and non-resident deposits, particularly from GREs and the government sector.