The Central Bank of the UAE (CBUAE) announced a 0.4 percent increase in money supply aggregate M1, rising from Dh1.0119 trillion at the end of April 2025 to Dh1.0156 trillion at the end of May 2025. This increase was due to a Dh3.4 billion growth in monetary deposits and a Dh0.3 billion rise in currency in circulation outside banks.
In its Monetary & Banking Developments for May 2025, the CBUAE stated that the money supply aggregate M2 increased by 1.6 percent, from Dh2,435.6 billion at the end of April 2025 to Dh2,474.0 billion at the end of May 2025. The rise in M2 was attributed to the elevated M1 and a Dh34.7 billion increase in quasi-monetary deposits.
The money supply aggregate M3 saw a 1.7 percent rise, moving from Dh2,898.2 billion at the end of April 2025 to Dh2,948.1 billion at the end of May 2025. The growth in M3 was due to the increase in M2 and an Dh11.5 billion rise in government deposits.
The monetary base expanded by 2.2 percent, from Dh819.0 billion at the end of April 2025 to Dh836.7 billion at the end of May 2025. This expansion was driven by increases in currency issued by 2.1 percent, the reserve account by 29.2 percent, and in monetary bills and Islamic certificates of deposit by 6.6 percent, which offset the 48.8 percent decrease in banks & OFCs’ current accounts & overnight deposits at CBUAE.
Gross banks’ assets, including bankers’ acceptances, increased by 2.7 percent from Dh4.7498 trillion at the end of April 2025 to Dh4.8783 trillion at the end of May 2025.
Gross credit rose by 1.5 percent from Dh2.2594 trillion at the end of April 2025 to Dh2.2934 trillion at the end of May 2025. This increase was driven by a combined growth in domestic credit by Dh7.1 billion and foreign credit by Dh26.9 billion. The growth in domestic credit resulted from increases in credit to the government sector by 2.0 percent and the private sector by 0.8 percent, while credit to the public sector (government-related entities) decreased by 2.4 percent, and non-banking financial institutions decreased by 2.5 percent.
Banks’ deposits increased by 1.8 percent, from Dh2.9654 trillion at the end of April 2025 to Dh3.0185 trillion at the end of May 2025. This increase was fueled by a 1.9 percent growth in resident deposits, reaching Dh2.7413 trillion, and a 0.6 percent increase in non-resident deposits, totaling Dh277.2 billion. Within resident deposits, government sector deposits rose by 3.4 percent, private sector deposits by 1.9 percent, and government-related entities deposits by 1.3 percent, while deposits from non-banking financial institutions decreased by 6.1 percent by the end of May 2025.
