Abu dhabi: The Central Bank of the UAE (CBUAE) announced a 1.0% increase in gross banks’ assets, reaching AED5,024.1 billion at the end of July 2025.

According to Emirates News Agency, the increase in money supply aggregate M1 by 0.3% was driven by a AED6.8 billion rise in monetary deposits, which outweighed a AED3.5 billion decrease in currency in circulation outside banks. The data was revealed in the Monetary and Banking Developments – July 2025 report released by the apex bank.

The money supply aggregate M2 saw a 0.6% increase, attributed to the rise in M1 and a AED12.4 billion increase in Quasi Monetary Deposits. Consequently, money supply aggregate M3 grew by 0.8%, supported by an elevated M2 and a AED8.9 billion increase in government deposits.

The monetary base experienced a 0.5% increase, driven by heightened banks and OFCs’ current accounts and overnight deposits of banks at CBUAE, which climbed by 44.5%. This was complemented by a 12.9% increase in monetary bills and Islamic certificates of deposit, counteracting a 2.6% decrease in currency issued and a 24.9% decrease in the reserve account.

Gross credit expanded by 1.4%, reaching AED2,366.2 billion. The growth was fueled by increases in domestic credit by AED21.0 billion and foreign credit by AED10.9 billion. Domestic credit growth was bolstered by increases in credit to the government sector by 5.2%, the public sector by 1.5%, the private sector by 0.5%, and non-banking financial institutions by 2.5%.

Banks’ deposits rose by 1.1%, amounting to AED3,080.3 billion. This was driven by a 1.1% growth in resident deposits, reaching AED2,820.6 billion, and a 1.0% growth in non-resident deposits, totaling AED259.7 billion. Within resident deposits, government sector deposits increased by 2.9%, government-related entities deposits by 5.0%, and private sector deposits by 0.7%, while non-banking financial institutions deposits decreased by 11.1%.