Abu Dhabi: The Central Bank of the UAE (CBUAE) has reported a 1.9% increase in gross banks' assets, which rose to AED4,719.4 billion at the end of March 2025. This increase marks significant growth from AED4,632.2 billion recorded at the end of February 2025.
According to Emirates News Agency, the money supply aggregate M1 saw a 0.4% rise, growing from AED982.4 billion at the end of February to AED986.2 billion by the end of March. This increase was primarily driven by a AED5.1 billion growth in currency in circulation outside banks, which overshadowed a AED1.4 billion decrease in monetary deposits.
Moreover, the money supply aggregate M2 experienced a 3.3% increase, climbing from AED2,360.3 billion at the end of February to AED2,437.7 billion at the end of March. This growth was attributed to an increase in M1, along with a AED73.8 billion rise in quasi-monetary deposits.
Similarly, money supply aggregate M3 rose by 2.9%, reaching AED2,893.7 billion by the end of March, up from AED2,811.7 billion at February's close. This was due to the expansion of M2 and a AED4.5 billion increase in government deposits.
The monetary base also saw a 2.0% growth, rising from AED816.6 billion at the end of February to AED833.1 billion at the end of March. This was driven by a 4.1% increase in currency issued and a substantial 62.0% rise in the reserve account, which counteracted decreases in banks and other financial corporations' current accounts, overnight deposits at CBUAE by 64.2%, and a 6.3% drop in monetary bills and Islamic certificates of deposit.
Gross credit expanded by 1.6%, moving from AED2,204.3 billion at the end of February to AED2,240.0 billion at the end of March. This increase was the result of a combined growth in domestic credit by AED19.5 billion and foreign credit by AED16.2 billion. The domestic credit growth was primarily due to a rise in credit to public sector entities by 0.2%, the private sector by 1.4%, and non-banking financial institutions by 1.9%, despite a 0.3% decrease in government sector credit.
Bank deposits also grew by 2.3%, reaching AED2,936.4 billion at the end of March from AED2,871.5 billion in February. This was driven by a 2.4% increase in resident deposits, which stood at AED2,687.8 billion, and a 0.4% rise in non-resident deposits, totaling AED248.6 billion. Within resident deposits, government-related entities saw a 4.3% increase, the private sector rose by 3.1%, and non-banking financial institutions marked a 5.1% increase, although government sector deposits declined by 2.3% by the end of March 2025.