Today's Edition
ABU DHABI (WAM)
The Central Bank issued the Monetary and Banking Developments – May 2026 report, which showed that money supply aggregate M1 amounted to Dh1,053.5 billion at the end of May 2026.
Currency in circulation outside banks settled at Dh167.6 billion, while monetary deposits stood at Dh885.9 billion.
The report also showed that the money supply aggregate M2 settled at Dh2,853.9 billion at the end of the month. Within quasi-money, dirham deposits increased to Dh1,135.4 billion, providing a positive contribution to the monthly movement in M2.
Furthermore, the money supply aggregate M3 stood at Dh3,393.4 billion at the end of May 2026. Government sector deposits grew to Dh539.5 billion, providing a positive contribution to monthly movement in M3.
The monetary base stood at Dh848.5 billion, at the end of May 2026. Over the month, reserve balances of banks with the CBUAE recorded a notable increase of 49.4%, rising to Dh295.4 billion.
Gross bank assets improved by 1.1% from Dh5,570.1 billion at the end of April 2026 to Dh5,633.1 billion at the end of May 2026.
Gross credit increased by Dh12.3 billion (0.5%), from Dh 2,720.7 billion at the end of April 2026 to Dh2,733.1 billion at the end of May 2026. The increase in gross credit was driven by an Dh13.8 billion rise in domestic credit, while foreign credit had negative influence, by 0.1 p.p., settling at Dh562.5 billion.
Within domestic credit, all sectors contributed positively to its growth.
The main driver was higher lending to the private sector, notably due to an increase of Dh4.6 billion in credit equally to both corporate and individuals, which each contributed 0.2 p.p to overall domestic credit growth. In addition, credit to GREs increased by Dh3.5 billion (1.0%), contributing 0.2 p.p to domestic credit growth.
Bank deposits stood at Dh3,463.4 billion at the end of May 2026 .
Over the month, non-resident deposits increased by 3.6% reaching Dh318.6 billion.
Within resident deposits, positive contributions came from increases in other financial corporations (OFCs) deposits, which improved by 2.4%, reaching Dh67.2 billion, and contributing to the overall change by 0.1 p.p.
