The Central Bank of the UAE has reported a significant increase in banks’ assets, with a growth of over 10.8% year-on-year, reaching Dh4.287 trillion in May 2024. This marks a substantial rise from Dh3.869 trillion recorded in May 2023. The data released by the apex bank also indicated a 0.7% growth in gross credit, reaching Dh2.077 trillion by the end of May 2024. This growth was driven by increases in both domestic and foreign credit, with domestic credit expanding at a rate of 0.7%.
Aggregate bank deposits in the UAE settled at Dh2.678 trillion at the end of May 2024, with private sector deposits seeing a notable increase of 1.2%. Additionally, non-banking financial institutions’ deposits rose by 2.7% during the same period. The monetary base in the country expanded by 1.8% in May 2024, reaching Dh727.1 billion. This growth was attributed to the increase in currency issued, reserve accounts, and banks’ current accounts and overnight deposits at CBUAE.
The money supply aggregate M1 stood at Dh879.2 billion at the end of May 2024. Meanwhile, the money supply aggregate M2 saw a 0.5% increase, reaching Dh2.160 trillion by the end of May 2024. This rise was mainly driven by an increase of Dh25 billion in Quasi-Monetary Deposits. Additionally, the money supply aggregate M3 was reported at Dh2.63 trillion at the end of May 2024.
Overall, the financial indicators released by the Central Bank of the UAE reflect a positive growth trajectory in the country’s banking sector. The increase in banks’ assets, credit, and deposits signify a healthy financial environment, which is crucial for sustaining economic growth. The growth in domestic credit, alongside the rise in private sector deposits and non-banking financial institutions’ deposits, indicates confidence in the UAE’s economy.
The expansion of the monetary base and the growth in money supply aggregates M1, M2, and M3 further contribute to the overall positive outlook for the UAE’s financial landscape. These developments point towards a stable and robust banking sector, capable of supporting the country’s economic development initiatives. As the UAE continues to strengthen its position as a leading financial hub in the region, the recent financial figures released by the Central Bank underscore the resilience and growth potential of the country’s banking sector.
In conclusion, the latest data from the Central Bank of the UAE highlights the continued growth and stability of the country’s banking sector. With increasing assets, credit, and deposits, the UAE’s financial landscape remains robust and well-positioned for further expansion. As the country strives to enhance its economic competitiveness and attract investment, the positive financial indicators serve as a testament to the strength and resilience of the UAE’s banking industry. Moving forward, maintaining this growth trajectory will be essential in supporting the UAE’s economic growth and development goals.
