The Central Bank of the UAE (CBUAE) reported a significant increase in gross banks’ assets, which rose by over 10.8% year-on-year (YoY) to reach AED4.287 trillion in May 2024, up from AED 3.869 trillion in May 2023.
This increase is equivalent to an additional AED 418.1 billion. The data also highlighted a 0.7% growth in gross credit, rising from AED 2.063 trillion in April 2024 to AED 2.077 trillion in May 2024. This growth was driven by a 0.7% increase in domestic credit and a 0.9% rise in foreign credit, with notable expansions in credit to government-related entities and the private sector, which grew by 0.6% and 1.2%, respectively.
Aggregate bank deposits reached AED2.678 trillion by the end of May 2024, with a 1.2% increase in private sector deposits and a 2.7% rise in deposits from non-banking financial institutions. The monetary base expanded by 1.8%, increasing from AED714.3 billion in April 2024 to AED727.1 billion in May 2024. This growth was attributed to increases in currency issued, reserve accounts, and overnight deposits, with respective growth rates of 1.4%, 3.3%, and 29.4%.
The money supply aggregate M1 settled at AED 879.2 billion, while M2 rose by 0.5%, reaching AED 2.160 trillion, largely due to an AED 25 billion increase in Quasi-Monetary Deposits. The broadest measure, M3, stood at AED 2.63 trillion at the end of May 2024. These figures underscore the UAE's strong financial sector performance and expanding monetary base.
News Source: Emirates News Agency
