The UAE banking sector opened 2026 on a steady growth path, with total assets, credit, and deposits all recording gains in January, reflecting continued economic momentum and liquidity strength, according to the Central Bank of the UAE.
Gross bank assets climbed 1.4 percent to AED 5.41 trillion at the end of January, up from AED 5.34 trillion a month earlier. The increase signals sustained balance sheet expansion across the sector.
Credit growth remained firm, rising 1.1 percent to AED 2.60 trillion. The expansion was largely driven by domestic lending, particularly to the private sector and government, which helped offset a decline in credit to other financial corporations.
Deposits also posted a 0.9 percent increase to AED 3.34 trillion. Growth was led by resident deposits, which rose 1.2 percent, supported by higher balances from the private sector, government-related entities, and the government. In contrast, non-resident deposits fell 2.4 percent, slightly weighing on overall growth.
Monetary aggregates reflected the broader expansion. M1 rose 0.9 percent, supported by higher currency circulation and demand deposits. M2 increased 1.3 percent, driven by growth in quasi-monetary deposits, with both corporate and individual deposits contributing equally. M3 expanded 1.4 percent, aided by higher government deposits.
The monetary base edged up 0.6 percent to AED 900.8 billion. Strong growth in reserve requirements and currency issuance supported the increase, though it was partially offset by a decline in bank and financial institution overnight deposits.
Overall, the data highlights a resilient banking system underpinned by steady credit demand and solid deposit growth at the start of the year.
News Source: Emirates News Agency
