UAE Central Bank Reports Growth in Banking Assets and Credit for September 2024

The Central Bank of the UAE (CBUAE) has reported a rise in key banking indicators for September 2024.

Gross banks’ assets, including bankers’ acceptances, increased by 0.5%, reaching AED 4,401.7 billion, compared to AED 4,378.0 billion at the end of August 2024.

According to the Monetary & Banking Developments Report, gross credit grew by 2.3%, climbing from AED 2,112.9 billion to AED 2,161.9 billion. This rise was driven by a 1.6% increase in domestic credit and a 6.9% growth in foreign credit. Domestic credit expansion was attributed to increases across sectors: government (0.4%), public sector (2.7%), private sector (1.5%), and non-banking financial institutions (1.8%).

Bank deposits also saw growth, rising by 0.8% to AED 2,761.4 billion. Resident deposits grew by 0.8%, supported by a 4.9% rise in government-related entity deposits, an 0.8% increase in private sector deposits, and a significant 20.5% surge in non-banking financial institution deposits. These gains offset a 3.9% decline in government sector deposits.

The money supply aggregates demonstrated upward trends. M1 increased by 0.9% to AED 896.3 billion, mainly due to higher currency circulation and monetary deposits. M2 rose by 1.7% to AED 2,249.6 billion, driven by M1 growth and a AED 30.0 billion boost in quasi-monetary deposits. M3 also grew by 0.9%, reaching AED 2,719.8 billion, despite a AED 15.0 billion drop in government deposits.

Additionally, the monetary base expanded by 1.2% to AED 743.5 billion, fueled by increased currency issuance and a sharp rise in banks' overnight deposits at the CBUAE.

These figures highlight continued confidence and stability in the UAE’s banking sector as it maintains steady growth across key financial indicators.

News Source: Emirates News Agency