The Central Bank of the UAE (CBUAE) reported a 0.4% rise in the M1 money supply, climbing from Dh1.0119 trillion at April’s close in 2025 to Dh1.0156 trillion by May’s end 2025. This was attributed to a Dh3.4 billion increase in monetary deposits and a Dh0.3 billion boost in currency circulating outside banks.
According to the CBUAE’s May 2025 Monetary & Banking Developments, the M2 money supply saw a 1.6% rise, moving from Dh2,435.6 billion at April’s end to Dh2,474.0 billion by May’s conclusion. This growth was due to a higher M1 and a Dh34.7 billion rise in quasi-monetary deposits.
The M3 money supply expanded by 1.7%, reaching Dh2,948.1 billion at the end of May 2025, up from Dh2,898.2 billion at April’s close. This was driven by the M2 increase and an additional Dh11.5 billion in government deposits.
The monetary base grew by 2.2%, increasing from Dh819.0 billion at April’s end to Dh836.7 billion by May’s conclusion. This growth was fueled by a 2.1% rise in currency issuance, a 29.2% increase in reserve accounts, and a 6.6% rise in monetary bills and Islamic certificates of deposit. However, there was a 48.8% reduction in banks & OFCs’ current accounts & overnight deposits at CBUAE.
Total banks’ assets, including bankers’ acceptances, rose by 2.7% from Dh4.7498 trillion at April’s end to Dh4.8783 trillion at May’s conclusion.
Total credit increased by 1.5%, moving from Dh2.2594 trillion at April’s end to Dh2.2934 trillion by May’s close. This was driven by a combined Dh7.1 billion growth in domestic credit and a Dh26.9 billion rise in foreign credit. Domestic credit growth was due to increases in government sector credit by 2.0% and private sector credit by 0.8%, while public sector credit (government-related entities) fell by 2.4% and non-banking financial institutions credit dropped by 2.5%.
Bank deposits grew by 1.8%, from Dh2.9654 trillion at April’s close to Dh3.0185 trillion by May’s end. This rise 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 grew 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 May’s end 2025.
