Abu dhabi: Gross banks' assets increased by 1.4% from AED 5,339.9 billion at the end of December 2025 to AED 5,413.6 billion at the end of January 2026, according to a report on the Monetary and Banking Developments - January 2026 issued by the Central Bank of the UAE (CBUAE).
According to Emirates News Agency, the report showed that gross credit increased by 1.1% from AED 2,570.3 billion at the end of December 2025 to AED 2,598.2 billion at the end of January 2026. Total credit growth was mainly supported by the growth of domestic credit by AED 27.9 billion, resulting from an increase in credit to the private sector by 0.6% and credit to the government sector by 2.5%. The decline in credit extended to Other Financial Corporations (OFC) by 5.7% moderated the overall domestic credit growth.
Banks' deposits rose by 0.9%, from AED 3,307.0 billion at the end of December 2025 to AED 3,336.8 billion at the end of January 2026. The increase was driven by a 1.2% growth in resident deposits reaching AED 3,046.1 billion, while non-resident deposits declined by 2.4% to AED 290.7 billion.
Within resident deposits, private sector deposits increased by 1.0% reaching AED 2,272.8 billion, and Government-Related Entities (GRE) deposits grew by 3.5% reaching AED 306.7 billion. Government sector deposits also rose by 2.0% to AED 401.3 billion, while OFC deposits decreased by 6.7% to AED 65.3 billion at the end of January 2026.
The report also highlighted an increase in money supply aggregate M1 by 0.9%, from AED 1,071.5 billion at the end of December 2025 to AED 1,081.3 billion at the end of January 2026, supported by a 2.7% increase in currency in circulation outside banks and a 0.6% increase in monetary deposits.
Money supply aggregate M2 increased by 1.3%, from AED 2,754.7 billion at the end of December 2025 to AED 2,789.8 billion at the end of January 2026, attributed to a AED 25.3 billion growth in Quasi-Monetary Deposits. Corporate sector and individuals' deposits contributed equally to the overall growth of M2.
GRE deposits increased by 3.6%, contributing to the growth of M2, driven by their AED demand and savings deposits. All sectors, except OFCs, contributed positively to M2 growth. The monthly decline in OFC sector deposits by 7.1% moderated the growth of the overall aggregate.
Money supply aggregate M3 increased by 1.4%, from AED 3,255.4 billion at the end of December 2025 to AED 3,301.5 billion at the end of January 2026. Government sector deposits recorded a monthly increase of 2.2%, reaching AED 511.7 billion.
The monetary base increased by 0.6%, from AED 895.7 billion at the end of December 2025 to AED 900.8 billion at the end of January 2026. The increase was driven by growth in Reserve Requirements by 32.4% and currency issued by 1.7%. Banks and OFCs Current Accounts and Overnight Deposits of Banks recorded a decline by 55.9%, moderating the growth of the overall aggregate.