The Central Bank of the UAE (CBUAE) has reported a 1.3% increase in gross banks’ assets, which reached AED 5.67 trillion (approximately $1.54 trillion) by the end of July 2026. This growth is attributed to a rise in private sector lending, as detailed in the CBUAE’s Monetary and Banking Developments report released on September 9, 2026, by Yara Abi Farraj.
Growth in Credit and Deposits
The report highlights that gross credit rose by 1.5%, amounting to AED 2.8 trillion. This increase was driven by a 1.4% rise in domestic credit, which reached AED 2.21 trillion, and a 1.8% increase in foreign credit, totaling AED 592.9 billion. These factors contributed positively to the overall growth of the banking sector.
Domestic credit expansion was primarily fueled by increased lending to the private sector. Specifically, credit to individuals grew by 2.3% (AED 13.9 billion), while corporate credit increased by 1.1% (AED 10.9 billion). Additionally, government lending saw a 1.7% rise, contributing AED 4.2 billion to domestic credit growth.
UAE banks also experienced a 1.1% increase in deposits, which reached AED 3.51 trillion by the end of July 2026. This growth was supported by both resident and non-resident deposits, with resident deposits rising by 0.5% to AED 3.198 trillion and non-resident deposits increasing by 6.8% to AED 311.4 billion.
Details on Deposit Contributions
Within the resident deposits, private sector contributions were significant, with a 0.7% increase leading to a total of AED 2.34 trillion. Government-related entities (GREs) also saw a notable rise in deposits, increasing by 3.7% to AED 347.3 billion.
In terms of the money supply, the aggregate M1 across UAE banks increased by 0.7% to AED 1.047 trillion. The currency in circulation outside banks stood at AED 159.2 billion, while monetary deposits rose by 0.9% to AED 888.1 billion. The M2 money supply also saw a 0.8% increase, reaching AED 2.9 trillion.
Overall, the banking sector’s performance in July 2026 reflects a robust growth trajectory, driven by increased lending and deposit activities, which are crucial for the UAE’s economic stability and growth.
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