ABU DHABI, November 24, 2025: The total assets of banks operating in the United Arab Emirates rose to AED 5.2 trillion at the end of September 2025, up 2.2 percent from AED 5.09 trillion recorded in August, according to data released by the Central Bank of the UAE (CBUAE). The increase reflects continued growth across the banking sector, supported by higher lending and deposit activity. The CBUAE’s Monetary and Banking Developments September 2025 report showed that money supply aggregate M1 grew by 0.4 percent, reaching AED 1.03 trillion from AED 1.03 trillion at the end of August. The rise resulted from a 1.0 percent increase in currency in circulation outside banks and a 0.3 percent rise in monetary deposits, indicating steady liquidity levels across the financial system.
Money supply aggregate M2, which includes M1 and quasi-monetary deposits, increased by 1.0 percent to AED 2.59 trillion from AED 2.56 trillion in the previous month. The gain was attributed to a AED 22.4 billion expansion in quasi-monetary deposits, highlighting stable deposit growth within the economy. Money supply aggregate M3, which comprises M2 and government deposits, rose 1.4 percent to AED 3.12 trillion from AED 3.08 trillion in August. The increase was primarily driven by higher M2 levels and an AED 17.4 billion rise in government deposits, reflecting stable financial flows within the public sector.
The report noted that the UAE’s monetary base fell by 2.5 percent, decreasing to AED 832.5 billion at the end of September from AED 854.1 billion in August. The contraction was mainly due to an 8.9 percent decline in reserve accounts, offsetting a 0.9 percent increase in currency issued. Banks’ and other financial corporations’ overnight deposits at the central bank decreased by 2.4 percent, while monetary bills and Islamic certificates of deposit were down 0.9 percent during the same period. Gross credit provided by banks expanded by 2.5 percent to AED 2.48 trillion, compared with AED 2.42 trillion at the end of August.
CBUAE data reflects strong growth in UAE banking assets
The increase was supported by growth in both domestic and foreign lending. Domestic credit rose by AED 43.9 billion, while foreign credit increased by AED 17.6 billion. Within domestic lending, credit to the government sector grew by 0.4 percent, to government-related entities by 7.2 percent, to the private sector by 1.5 percent, and to non-banking financial institutions by 9.1 percent. Bank deposits across the UAE climbed 1.8 percent to AED 3.19 trillion at the end of September, from AED 3.13 trillion a month earlier. The rise was driven by a 0.7 percent increase in resident deposits, which reached AED 2.89 trillion, and a 14.5 percent surge in non-resident deposits to AED 294.6 billion.
CBUAE data highlights sector stability in Q3 2025
Among resident deposits, the government sector saw a 0.5 percent decline, deposits from government-related entities edged down 0.1 percent, private sector deposits increased by 0.7 percent, and non-banking financial institutions’ deposits rose by 13.8 percent. The CBUAE figures show that the UAE banking sector maintained solid balance sheet growth during the third quarter of 2025, underpinned by higher credit activity, diversified funding sources, and stable liquidity indicators. The data underscores continued confidence in the domestic financial system and reflects the sector’s capacity to support economic activity through the remainder of the year. – By Content Syndication Services.