Gross banks’ assets up 1.0% to Dhs5,024.1 billion at end of July 2025: CBUAE

The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 0.3%, from Dhs1,026.2 billion at the end of June 2025 to Dhs1,029.5 billion at the end of July 2025.

The increase was due to Dhs6.8 billion increase in monetary deposits, overshadowing Dhs3.5 billion decrease in currency in circulation outside banks, according to Monetary & Banking Developments – July 2025, released by the apex bank today.

The money supply aggregate M2 grew by 0.6%, from Dhs2,531.2 billion at the end of June 2025 to Dhs2,546.9 billion at the end of July 2025. M2 increased due to an elevated M1, and Dhs12.4 billion increase in Quasi Monetary Deposits.

Consequently, money supply aggregate M3 also increased by 0.8%, from Dhs2,997.6 billion at the end of June 2025 to Dhs3,022.2 billion at the end of July 2025. M3 increased due to the increase in M2, amplified by Dhs8.9 billion increase in government deposits.

The monetary base increased by 0.5%, from Dhs860.0 billion at the end of June 2025 to Dhs864.0 billion at the end of July 2025. The increase in the monetary base was driven by increases in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 44.5% and in monetary bills & Islamic certificates of deposit by 12.9%, overriding the decreases in currency issued by 2.6% and in reserve account by 24.9%

Gross banks’ assets increased by 1.0% from Dhs4,973.3 billion at the end of June 2025 to Dhs5,024.1 billion at the end of July 2025.

Gross credit increased by 1.4% from Dhs2,334.3 billion at the end of June 2025 to Dhs2,366.2 billion at the end of July 2025. Gross credit increased due to the combined growth in domestic credit by Dhs21.0 billion and foreign credit by AED10.9 billion. The growth in domestic credit was due to increases in credit to the; government sector by 5.2%, public sector (government-related entities) by 1.5%, private sector by 0.5% and non-banking financial institutions by 2.5%

Banks’ deposits grew by 1.1%, from Dhs3,045.8 billion at the end of June 2025 to Dhs3,080.3 billion at the end of July 2025. The increase in bank deposits was driven by the growth in resident deposits by 1.1%, reaching Dhs2,820.6 billion, and in non- resident deposits by 1.0%, reaching Dhs259.7 billion.

Within the resident deposits; government sector deposits increased by 2.9%, government-related entities deposits increased by 5.0% and private sector deposits increased by 0.7%, while non-banking financial institutions deposits decreased by 11.1%, at the end of July 2025.

WAM