Today's Edition
ABU DHABI (ALETIHAD)
UAE banks’ gross assets increased by 1.3% month on month to Dh5.669 trillion at the end of July 2026, according to the latest Monetary and Banking Developments report issued by the Central Bank of the UAE (CBUAE).
Gross credit continued to expand, rising by Dh41.2 billion, or 1.5%, during July to reach Dh2.799 trillion. The increase was supported by both domestic and foreign lending, the report said.
Domestic credit rose 1.4% to Dh2.206 trillion, while foreign credit increased 1.8% to Dh592.9 billion.
Within domestic credit, lending to individuals recorded the strongest increase, rising 2.3%, or Dh13.9 billion, during the month. Credit to companies increased 1.1%, or Dh10.9 billion, while lending to the government rose 1.7%, equivalent to Dh4.2 billion.
Banks’ deposits increased 1.1% to Dh3.510 trillion at the end of July from Dh3.473 trillion at the end of June, supported by increases in both resident and non-resident deposits.
Resident deposits rose 0.5% to Dh3.198 trillion, while non-resident deposits recorded a stronger 6.8% increase to Dh311.4 billion.
Among resident deposits, private-sector deposits rose 0.7% to Dh2.344 trillion and made the largest contribution to overall growth. Deposits of government-related entities increased 3.7% to Dh347.3 billion.
Deposits of other financial corporations stood at Dh61.3 billion, while government-sector deposits were Dh445.4 billion at the end of July.
The CBUAE also reported increases across the main measures of money supply during the month.
M1 increased 0.7% to Dh1.047 trillion at the end of July. Currency in circulation outside banks stood at Dh159.2 billion, while monetary deposits rose 0.9% to Dh888.1 billion.
M2 rose 0.8% to Dh2.900 trillion, supported by increases in corporate and government-related entity deposits, while M3 increased 0.4% to Dh3.441 trillion. Individual deposits also contributed positively to M3 growth, rising 0.2% to Dh896.5 billion.
M1, M2 and M3 are progressively broader measures of money available in the economy. M1 covers cash outside banks and readily accessible current and call-account deposits; M2 adds residents’ time, savings and foreign-currency deposits, while M3 further includes government deposits held with banks and the Central Bank.
The monetary base increased 1.2% to Dh792.7 billion at the end of July. Banks’ reserve balances with the CBUAE rose 4.7% to Dh256.9 billion during the month, the report said.
