The Central Bank of the UAE (CBUAE) reported steady growth across key monetary aggregates and banking indicators in July 2025, reflecting resilience in the country’s financial system.
According to the latest Monetary & Banking Developments report, money supply aggregate M1 rose by 0.3% to AED1,029.5 billion, supported by a AED6.8 billion increase in monetary deposits that outweighed a decline in currency in circulation.
M2, which includes M1 and quasi-monetary deposits, expanded by 0.6% to AED2,546.9 billion, while M3 advanced by 0.8% to AED3,022.2 billion. The growth in M3 was attributed to higher M2 levels and an AED8.9 billion increase in government deposits.
The monetary base edged up 0.5% to AED864.0 billion, driven largely by a sharp rise in banks’ current accounts and overnight deposits with the central bank, along with growth in monetary bills and Islamic certificates of deposit.
On the banking side, gross assets climbed 1.0% to AED5,024.1 billion, while gross credit rose 1.4% to AED2,366.2 billion. The increase in credit was supported by growth across domestic segments, with lending to the government sector up 5.2%, government-related entities up 1.5%, the private sector up 0.5%, and non-banking financial institutions up 2.5%.
Banks’ deposits also recorded an increase of 1.1%, reaching AED3,080.3 billion. Resident deposits grew to AED2,820.6 billion, led by higher government and private sector deposits, while non-resident deposits rose slightly to AED259.7 billion.
The CBUAE figures highlight stable liquidity conditions and ongoing credit expansion, underscoring continued momentum in the UAE’s banking sector.
News Source: Emirates News Agency
