Gross Banks’ Assets Rise By 1.6% To AED 4,636.8 Billion At End Of February 2025 According To CBUAE

The Central Bank of the UAE (CBUAE) reported a rise in the money supply aggregate M1 by 1.8%, moving from AED 965.3 billion at January's end to AED 982.9 billion by February's close in 2025. This growth was attributed to a AED 4.1 billion increase in currency circulating outside banks and a AED 13.5 billion rise in monetary deposits.

Gross banks' assets, which include bankers' acceptances, saw a 1.6% increase, rising from AED 4,562.3 billion at the end of January to AED 4,636.8 billion by February's end in 2025. Gross credit also rose by 0.9%, reaching AED 2,205.1 billion from AED 2,186.3 billion over the same period.

The monetary base expanded by 3.1%, growing from AED 791.9 billion at January's conclusion to AED 816.6 billion by February's end in 2025. This expansion was driven by increases of; 3.4% in currency issued, an impressive 11.4% rise in banks & OFCs’ current accounts & overnight deposits at CBUAE, and a 6.2% increase in monetary bills & Islamic certificates of deposit.

Banks' deposits grew by 1.2%, increasing from AED 2,840.7 billion at January's end to AED 2,874.6 billion by February's close in 2025. Resident deposits rose by 0.8%, reaching AED 2,625.5 billion, while non-resident deposits surged by 5.1%, totalling AED 249.1 billion.

The growth in gross credit was due to combined increases of AED 1.7 billion in domestic credit and AED 17.1 billion in foreign credit during this period in early 2025. Domestic credit growth stemmed from a rise of; private sector credit by 0.7% and non-banking financial institutions credit by an impressive rate of 5.2%.

Meanwhile, within resident deposits; government-related entities' deposits increased significantly by 3.8%, private sector deposits grew by a modest rate of; and non-banking financial institutions' deposits rose sharply by; however, government sector deposits fell notably by the end of February.

Money Supply Aggregates

The money supply aggregate M2 also increased by the same percentage as M1 at; rising from AED; to AED;. This was due to both the elevated M1 and a significant rise of; in Quasi-Monetary Deposits during this period.

M3 experienced a smaller increase of; growing from AED; to AED;. This growth was primarily driven by the increase in M2 despite a notable decrease of; in government deposits during this time frame.

The report highlights that while there were increases across various sectors, certain areas such as public sector (government-related entities) credit decreased by;, and government sector credit dropped slightly during this period.

With inputs from WAM