Abu dhabi: The Central Bank of the UAE (CBUAE) reported an increase in money supply aggregate M1 by 1.7 percent, from AED1,081.3 billion at the end of January 2026 to AED1,099.8 billion at the end of February 2026.
According to Emirates News Agency, the increase was supported by a rise in currency in circulation outside banks by 1.4 percent and in monetary deposits by 1.8 percent. The money supply aggregate M2 saw a 2.4 percent increase in February 2026, climbing from AED2,789.8 billion at the end of January to AED2,856.8 billion by the end of February. This growth was largely driven by a AED48.5 billion increase in Quasi-Monetary Deposits, with the corporate sector making the largest contribution through a 2.1 percent rise in deposits, accounting for 1.0 percentage point of the overall M2 growth.
Individual deposits rose by 5.3 percent, contributing 0.8 percentage points, while deposits from Government-Related Entities (GREs) grew by 1.8 percent, adding 0.2 percentage points to M2 growth, primarily due to higher demand and savings deposits in AED. Other Financial Corporations (OFC) deposits contributed positively to M2 growth, with a recorded increase of 13.0 percent, mainly in foreign currency demand deposits.
The money supply aggregate M3 rose by 1.6 percent, reaching AED3,353.7 billion at the end of February 2026 from AED3,301.5 billion at the end of January. While government sector deposits decreased by 2.9 percent to AED496.9 billion, contributing negatively to M3 growth by 0.4 percentage points, the overall increase in M3 was buoyed by positive contributions from other deposit categories.
The monetary base experienced a 2.0 percent increase, from AED900.8 billion at the end of January 2026 to AED918.6 billion at the end of February 2026. This was driven by a significant growth in Banks and OFCs Current Accounts and Overnight Deposits of Banks by 33.6 percent, as well as increases in Reserve Requirements by 1.1 percent and currency issued by 0.6 percent. However, Monetary Bills and Islamic Certificates of Deposit decreased by 4.3 percent, which moderated the overall growth of the monetary base.
Gross banks' assets rose by 1.1 percent from AED5,413.6 billion at the end of January 2026 to AED5,472.5 billion at the end of February 2026. Gross credit increased by 1.2 percent, reaching AED2,630.6 billion. This growth was primarily supported by a AED20.6 billion increase in domestic credit, with credit to the private sector growing by 1.3 percent and contributing 0.8 percentage points to the total gross credit growth.
While credit to GREs increased by 1.1 percent, adding 0.2 percentage points, growth in domestic credit was partially offset by a 1.1 percent decline in credit to the Government sector, which negatively impacted overall domestic credit growth by 0.1 percentage points. Banks' deposits also saw a 1.9 percent increase, reaching AED3,400.0 billion at the end of February 2026, driven by a 1.7 percent growth in resident deposits and a 3.8 percent increase in non-resident deposits. Within resident deposits, the private sector's 2.2 percent increase contributed 1.6 percentage points, while GRE and OFC deposits each grew by 1.8 percent and 10.3 percent, respectively. However, government sector deposits decreased by 2.3 percent, settling at AED392.0 billion by the end of February 2026.