The Central Bank of the UAE (CBUAE) reported a 0.4% rise in the M1 money supply, climbing from Dh1.0119 trillion at April 2025’s end to Dh1.0156 trillion by May’s close. This was due to a Dh3.4 billion boost in monetary deposits and a Dh0.3 billion increase in circulating currency outside banks.
In its May 2025 Monetary & Banking Developments report, the CBUAE noted a 1.6% rise in the M2 money supply, from Dh2,435.6 billion at April’s end to Dh2,474.0 billion by May’s end. This increase was attributed to a higher M1 and a Dh34.7 billion surge in quasi-monetary deposits.
The M3 money supply grew by 1.7%, moving from Dh2,898.2 billion at April’s end to Dh2,948.1 billion at May’s end, driven by the M2 increase and an Dh11.5 billion rise in government deposits.
The monetary base increased by 2.2%, from Dh819.0 billion at April’s end to Dh836.7 billion at May’s end. This growth resulted from a 2.1% rise in currency issued, a 29.2% increase in reserve accounts, and a 6.6% growth in monetary bills and Islamic certificates of deposit, countering a 48.8% drop in banks & OFCs’ current accounts and overnight deposits at CBUAE.
Gross banks’ assets, including bankers’ acceptances, rose by 2.7%, from Dh4.7498 trillion at April’s end to Dh4.8783 trillion at May’s end.
Gross credit rose by 1.5%, from Dh2.2594 trillion at April’s end to Dh2.2934 trillion at May’s end, due to a Dh7.1 billion increase in domestic credit and a Dh26.9 billion rise in foreign credit. Domestic credit growth was supported by a 2.0% increase in government sector credit and a 0.8% rise in private sector credit, while credit to the public sector and non-banking financial institutions fell by 2.4% and 2.5%, respectively.
Bank deposits grew by 1.8%, from Dh2.9654 trillion at April’s end to Dh3.0185 trillion by May’s end. This was driven by a 1.9% increase in resident deposits, reaching Dh2.7413 trillion, and a 0.6% rise in non-resident deposits, totaling Dh277.2 billion. Within resident deposits, government sector deposits increased by 3.4%, private sector deposits by 1.9%, and government-related entities deposits by 1.3%, while non-banking financial institutions deposits decreased by 6.1% by the end of May 2025.
