UAE money supply tops Dh1 trillion in May, spurred by rise in monetary deposits

19/08/2025 04:00 AST

The Central Bank of the UAE (CBUAE) announced the increase in money supply aggregate M1 by 0.4 per cent, from Dh1.0119 trillion at the end of April 2025 to Dh1.0156 trillion at the end of May 2025. The increase was due to Dh3.4 billion growth in monetary deposits, and Dh0.3 billion increase in currency in circulation outside banks.

In its Monetary & Banking Developments for May 2025, the CBUAE said that the money supply aggregate M2 increased by 1.6 per cent, from Dh2,435.6 billion at the end of April 2025 to Dh2,474.0 billion at the end of May 2025. M2 increased due to an elevated M1, and Dh34.7 billion increase in quasi monetary deposits.

The money supply aggregate M3 increased by 1.7 per cent, from Dh2,898.2 billion at the end of April 2025 to Dh2,948.1 billion at the end of May 2025. M3 increased due to the growth in M2, and Dh11.5 billion increase in government deposits.

The monetary base increased by 2.2 per cent, from Dh819.0 billion at the end of April 2025 to Dh836.7 billion at the end of May 2025. The increase in the monetary base was driven by increases in currency issued by 2.1 per cent, reserve account by 29.2 per cent, and in monetary bills and Islamic certificates of deposit by 6.6 per cent overriding the decrease in banks & OFCs' current accounts & overnight deposits of banks at CBUAE by 48.8 per cent.

Gross banks' assets, including bankers' acceptances, increased by 2.7 per cent from Dh4.7498 trillion at the end of April 2025 to Dh4.8783 trillion at the end of May 2025.

Gross credit increased by 1.5 per cent from Dh2.2594 trillion at the end of April 2025 to Dh2.2934 trillion at the end of May 2025. Gross credit increased due to the combined growth in domestic credit by Dh7.1 billion and foreign credit by Dh26.9 billion. The growth in domestic credit was due to increases in credit to the; government sector by 2.0 per cent, private sector by 0.8 per cent, while credit to the public sector (government-related entities) decreased by 2.4 per cent, and non-banking financial institutions decreased by 2.5 per cent.

Banks' deposits increased by 1.8 per cent, from Dh2.9654 trillion at the end of April 2025 to Dh3.0185 trillion at the end of May 2025. The increase in bank deposits was driven by the growth in resident deposits by 1.9 per cent, settling at Dh2.7413 trillion and in non- resident deposits by 0.6 per cent, reaching Dh277.2 billion. Within the resident deposits; government sector deposits increased by 3.4 per cent, private sector deposits increased by 1.9 per cent, and government-related entities deposits increased by 1.3 per cent, while non-banking financial institutions deposits decreased by 6.1 per cent by the end of May 2025.

Khaleej Times