The Central Bank of the UAE reported steady growth in the nation’s money supply and banking sector in May 2025, reflecting ongoing liquidity expansion across domestic and foreign markets.
Money supply aggregate M1, covering currency in circulation and monetary deposits, rose 0.4% to AED1,015.6 billion, driven by AED3.4 billion growth in deposits and AED0.3 billion in cash circulation. M2, which includes quasi-monetary deposits, increased 1.6% to AED2,474.0 billion, while M3, the broadest measure, climbed 1.7% to AED2,948.1 billion, supported by higher government deposits.
The monetary base expanded 2.2% to AED836.7 billion, bolstered by increases in currency issuance, reserve accounts, and monetary bills, despite declines in certain bank accounts and overnight deposits.
Gross banks’ assets rose 2.7% to AED4,878.3 billion, and gross credit increased 1.5% to AED2,293.4 billion, reflecting growth in domestic and foreign lending. Credit to government and private sectors rose, while lending to public sector entities and non-banking financial institutions fell.
Bank deposits strengthened by 1.8% to AED3,018.5 billion, driven by growth in resident and non-resident deposits, with government and private sector holdings showing the largest gains.
The data highlights steady monetary expansion and banking sector resilience as the UAE continues supporting economic growth.
News Source: Emirates News Agency
