According to the Monetary and Banking Developments released by the Central Bank of the UAE (CBUAE), gross banks’ assets, including bankers’ acceptances, increased by 1.0% from AED 4,254.5 billion at the end of March 2024 to AED 4,296.5 billion at the end of April 2024.
Gross credit increased by 0.8% from AED 2,047.0 billion at the end of March 2024 to AED 2,063.1 billion at the end of April 2024. The increase in foreign credit by 1.4% and in domestic credit by 0.7% drove the growth in gross credit.
The reason for the expansion of domestic credit was the 4.7% and 0.4% increases in credit to the private and public sectors, respectively, which countered the 0.5% and 3.8% declines in credit to non-banking financial institutions and the public sector (government-related entities).
Aggregate bank deposits increased by 2.3% to AED 2,717.5 billion, between the end of March 2024 and the end of April 2024, stated CBUAE. The rise in resident deposits of 2.7% offset the 2.9% decrease in non-resident deposits, which resulted in an increase in total bank deposits.
The growth in private sector and government-related entity deposits by 13% and 1.4%, respectively, more than offset the decline in deposits in non-banking financial institutions and government-related entities by 0.5% and 18.8%, respectively, due to the expansion of resident deposits, by the end of April 2024.
The Central Bank declared that at the end of April 2024, the aggregate money supply (M1) was AED 892.4 billion, up 1.6% from AED 878.1 billion at the end of March 2024. This resulted from an increase in currency in circulation outside of banks of AED 11.2 billion and an increase in monetary deposits of AED 13.1 billion.
The aggregate money supply (M2) was AED 2,148,05 billion, at the end of April 2024, up 0.6% from AED 2,134,08 billion at the end of March 2024. The M2 rose primarily as a result of a higher M1, which outweighed the AED 0.6 billion decline in quasi-monetary deposits.