The UAE banking sector expanded steadily in April 2026, with total assets climbing to AED5.57 trillion, a 0.2 percent increase from AED5.556 trillion recorded at the end of March, according to the Central Bank of the UAE's Monetary and Banking Developments Report.
Gross bank credit grew by AED25.2 billion, or 0.9 percent, reaching AED2.721 trillion. The rise was primarily driven by a AED18.5 billion increase in domestic credit, with private sector lending to individuals leading the way. Housing loans and personal consumer loans were the main contributors, pushing individual credit up by AED6.2 billion.
Credit to government-related entities also rose sharply, up AED7.7 billion or 2.3 percent, while lending to both the government and corporate sectors recorded modest positive contributions to monthly domestic credit growth.
On the deposits side, bank deposits grew 0.7 percent to AED3.469 trillion, fuelled entirely by a rise in resident deposits to AED3.162 trillion. The private sector led this growth, with deposits increasing 1.4 percent to AED2.31 trillion. Government sector deposits surged 4.6 percent to AED446.8 billion. Deposits from government-related entities and other financial corporations, however, both declined by 6.6 percent, partially offsetting overall growth.
Monetary aggregates presented a mixed picture. M1 dipped 0.8 percent to AED1.064 trillion, while M2 and M3 remained broadly stable at AED2.87 trillion and AED3.407 trillion respectively. The monetary base contracted 1.6 percent to AED865.8 billion, largely due to a sharp 26.3 percent fall in reserve requirements.
Domestic fund transfers through the UAE Funds Transfer System reached AED9.384 trillion in the first four months of 2026, with April alone accounting for AED2.723 trillion.
The Central Bank's gold holdings also edged up approximately 2 percent during April to AED40.816 billion.
News Source: Emirates News Agency
