UAE Bank Assets Climb to $1.43 Trillion as Credit and Deposits Expand
UAE banking sector assets recorded steady growth in November, rising by 0.8 percent to reach 5.25 trillion dirhams ($1.43 trillion), reflecting continued expansion in credit and deposit activity, according to newly released central bank data.
The increase marks a rise from 5.2 trillion dirhams in October, highlighting the sector’s resilience amid broader economic momentum. Gross credit grew by 0.7 percent to 2.53 trillion dirhams, supported by gains in both domestic and international lending.
Domestic credit expansion was led by a 0.4 percent increase in lending to the private sector, aligning with national efforts to stimulate business activity and diversify the economy beyond oil. Credit to government entities and non-banking financial institutions also posted notable growth, strengthening overall financial stability.
Central bank figures showed that domestic credit rose by 9 billion dirhams, while foreign credit added 8.7 billion dirhams during the month, underscoring rising confidence in the UAE’s financial system.
Meanwhile, shifts were observed in money supply trends. The narrow money measure declined slightly due to reduced monetary deposits, while broader liquidity indicators recorded solid gains. This movement suggests funds are increasingly being placed in savings and time deposits, supporting longer-term lending and investment activity.
The country’s monetary base also strengthened, rising by 1.7 percent, driven by higher reserve balances, increased currency in circulation, and growth in Islamic certificates of deposit.
On the deposit side, total bank deposits increased by 1 percent to reach 3.23 trillion dirhams. Resident deposits accounted for most of the rise, led by stronger private sector savings and higher deposits from government-related entities.
Analysts say the continued expansion of assets, credit, and deposits reflects the UAE banking sector’s solid fundamentals and its key role in supporting economic growth, investment, and financial stability across the country.
