The Central Bank of the UAE (CBUAE) has reported a significant rise in the country's money supply and banking sector indicators for December 2024.
According to the latest Monetary & Banking Developments report, key financial aggregates, including M1, M2, and M3, registered an increase, reflecting robust liquidity and economic activity.
Money supply aggregate M1 rose by 2.3%, reaching AED 946.4 billion, driven by an AED 1.1 billion increase in currency circulation and a AED 20.6 billion surge in monetary deposits. Meanwhile, M2 expanded by 1.7% to AED 2,317.5 billion, supported by higher M1 and a AED 17.0 billion increase in quasi-monetary deposits. The broader M3 aggregate edged up 0.4% to AED 2,778.9 billion, despite a AED 27.1 billion decline in government deposits.
The UAE’s monetary base grew by 4.4%, reaching AED 780.6 billion, primarily due to a 23.7% rise in banks and other financial corporations’ (OFCs) current accounts and overnight deposits with CBUAE.
The banking sector showed continued expansion, with gross banks' assets climbing 2.4% to AED 4,560.0 billion, while gross credit increased 0.8% to AED 2,181.1 billion. The rise in credit was fueled by an 8.3% jump in foreign credit, counterbalancing a 0.4% decline in domestic credit.
Banks’ deposits witnessed 1.5% growth, reaching AED 2,847.0 billion, spurred by a 13.9% increase in non-resident deposits and a 0.5% rise in resident deposits. While private sector and non-banking financial institution deposits grew, government sector deposits saw a 5.2% decline.
The latest data underscores the UAE’s resilient financial sector, with stable liquidity levels and growing foreign investment, setting a positive trajectory for 2025.
News Source: Emirates News Agency
