The UAE’s banking industry saw a modest expansion, propelled by increased lending and a notable surge in non-resident deposits. Total banking assets increased to 4.75 trillion dirhams (USD 1.29 trillion) in April.
According to the “Summary Report—Monetary & Banking Developments—April 2025,” issued today by the Central Bank of the UAE (CBUAE), total bank credit increased by 0.9 per cent to surpass AED2.259 trillion at the end of April, compared to AED2.240 trillion at the end of March. This increase was driven by a rise of AED12.3 billion in domestic credit and AED7.1 billion in foreign credit.
The growth in domestic credit was attributed to a 0.7 per cent increase in credit to the UAE government sector, a 1.2% increase to the public sector (government-related entities), and a 0.6% increase to the private sector. Meanwhile, credit to non-banking financial institutions declined by 4.3%. Also, total bank deposits rose by 1% month-on-month to exceed AED2.965 trillion at the end of April, compared to AED2.936 trillion at the end of March 2025.
This increase was driven by a 0.1% rise in resident deposits, which reached over AED2.689 trillion, in addition to a 10.9% increase in non-resident deposits to AED275.6 billion. Within resident deposits, government sector deposits rose by 0.9%, and private sector deposits increased by 1.1%. However, deposits from non-banking financial institutions fell by 9.2%, and deposits from government-related entities declined by 6.5%.
“The central bank also reported a 2.6% increase in the monetary aggregate M1, which reached AED1.0119 trillion at the end of April, up from AED986.2 billion at the end of March. This was due to a AED26.9 billion increase in monetary deposits, which offset a AED1.2 billion decline in currency in circulation outside banks. Conversely, the M2 aggregate declined by 0.1 per cent to AED2.435 trillion at the end of April, compared to AED2.4377 trillion in March, driven by a AED27.8 billion fall in quasi-monetary deposits,” the Emirates News Agency reported.
The M3 aggregate increased by 0.2% from AED2.8937 trillion in March to AED2.8982 trillion in April, mainly due to a AED6.6 billion increase in government deposits. Data also showed a 1.7% decline in the monetary base, from AED833.1 billion in March to AED819 billion in April, attributed to a 2.5% drop in issued currency and a 32.0% fall in reserve accounts, despite a significant 159.8% surge in current accounts and overnight deposits held by banks and other financial institutions at the central bank, as well as a 3.1% rise in monetary bills and Islamic certificates of deposit.
Meanwhile, the central bank’s foreign assets increased to AED937.5 billion at the end of April 2025, compared to AED935.2 billion at the end of March. As of April end, these foreign assets comprised AED403.2 billion in bank balances and deposits abroad, AED490.1 billion in foreign securities, and AED44.1 billion in other foreign assets.
“The central bank’s balance sheet totalled AED972.3 billion, with liabilities and capital consisting of AED449.1 billion in current accounts and deposit accounts, AED279.9 billion in monetary bills and Islamic certificates of deposit, AED165.2 billion in currency notes and coins in circulation, AED33.2 billion in other liabilities, and AED45 billion in capital and reserves. On the asset side, the balance sheet comprised AED210.9 billion in cash and bank balances, AED208 billion in deposits, AED516.8 billion in investments, AED0.5 billion in loans and advances, and AED36.2 billion in other assets,” Emirates News Agency noted.