Listen to the article
UAE banking assets have reached unprecedented levels, with total banking assets rising by 88 billion dirhams in just one month. According to data from the Central Bank of the UAE, total banking assets of UAE banks increased by 1.7 percent from 5.251 trillion dirhams at the end of November to 5.339 trillion dirhams at the end of December 2025, reflecting continued strength in the Emirates’ financial sector.
The Central Bank’s monetary and banking developments report confirmed that total credit expanded by 1.5 percent during the same period. Total credit grew by 37.4 billion dirhams, rising from 2.532 trillion dirhams at the end of November to 2.570 trillion dirhams by the end of December 2025.
Foreign Currency Credit Drives UAE Banking Assets Growth
The expansion in total credit was primarily driven by foreign currency lending, according to the Central Bank. Foreign currency credit increased by 25.8 billion dirhams, accounting for approximately two-thirds of the overall credit growth. The remaining portion stemmed from domestic credit, which rose by 11.6 billion dirhams during December.
The Central Bank data revealed that domestic credit growth resulted from multiple factors. Private sector credit increased by 0.6 percent, contributing approximately 0.4 percentage points to the total growth of 0.6 percent. Additionally, credit extended to government-related entities rose by 1.8 percent, while lending to other financial institutions surged by 10.9 percent.
However, credit to the government sector declined, contributing a negative 0.2 percentage points to overall domestic credit growth. This partial offset moderated the otherwise robust expansion in domestic lending activities across the UAE banking sector.
Bank Deposits Surge Across Resident and Non-Resident Categories
Total bank deposits demonstrated strong momentum, rising by 2.2 percent during December. The Central Bank reported that deposits increased by 70.4 billion dirhams, climbing from 3.236 trillion dirhams at the end of November to 3.307 trillion dirhams by month-end December.
Resident deposits grew by 1.3 percent to exceed 3 trillion dirhams, while non-resident deposits surged by 12.2 percent to reach 297.8 billion dirhams. Within the resident category, private sector deposits rose by 2.8 percent to 2.249 trillion dirhams, the Central Bank indicated.
Meanwhile, deposits from government-related entities increased by 4.8 percent to 296.2 billion dirhams. Non-bank financial institution deposits climbed by 12.9 percent to reach 70 billion dirhams. In contrast, government sector deposits fell by 10.4 percent, settling at 393.4 billion dirhams at the end of December 2025.
Money Supply Indicators Show Broad-Based Expansion
The Central Bank announced that M1 money supply grew by 2.2 percent month-on-month, increasing from 1.048 trillion dirhams at the end of November to 1.071 trillion dirhams by the end of December 2025. This measure reflects the most liquid forms of money in circulation.
Furthermore, M2 money supply expanded by 3.2 percent, rising from 2.669 trillion dirhams to approximately 2.754 trillion dirhams during the same period. The broader M3 money supply measure increased by 1.2 percent, climbing from 3.216 trillion dirhams to 3.255 trillion dirhams.
The monetary base demonstrated particularly strong growth, increasing by 5.4 percent from 850.1 billion dirhams at the end of November to 895.7 billion dirhams by the end of December, according to Central Bank data.
Foreign Assets and Central Bank Balance Sheet Expand
The Central Bank’s total foreign assets, excluding reserve tranche positions and Special Drawing Rights with the International Monetary Fund, rose substantially during December. Foreign assets increased to 1.058 trillion dirhams compared to 1.011 trillion dirhams in November 2025.
These foreign assets were distributed as follows: 336.6 billion dirhams in banking balances and deposits with overseas banks, 660.1 billion dirhams in foreign securities, and 61.4 billion dirhams in other foreign assets. The Central Bank’s overall balance sheet expanded from 1.046 trillion dirhams at the end of November to 1.093 trillion dirhams by the end of December.
The Central Bank has not announced the release date for January 2025 banking statistics, though monthly reports typically follow a regular publication schedule. Market observers will monitor whether the growth trajectory in UAE banking assets continues into the new year.
