UAE bank deposits increased by 0.9 percent, from AED3,307 billion at the end of December 2025 to AED3,336.8 billion at the end of January 2026
UAE gross banks’ assets increased by 1.4 percent from AED5.34 trillion ($1.45 trillion) at the end of December 2025 to AED5.41 trillion ($1.47 trillion) at the end of January 2026, according to a report on the Monetary & Banking Developments January 2026 issued by the Central Bank of the UAE (CBUAE).
The report showed that the gross credit increased by 1.1 percent to AED2.59 trillion at the end of January 2026. Total credit growth was supported mostly by growth of domestic credit, which is the result of an increase in credit to the private sector by 0.6 percent and credit to the government sector by 2.5 percent.
Growth of domestic credit was moderated by the decline in credit extended to OFC for 5.7 percent, which had a negative contribution on overall domestic credit growth.
Resident deposits drive growth
The central bank report also revealed that UAE bank deposits increased by 0.9 percent, from AED3,307 billion at the end of December 2025 to AED3,336.8 billion at the end of January 2026. The increase in banks’ deposits was driven by growth in resident deposits by 1.2 percent, reaching AED3.046 trillion, while non-resident deposits declined by 2.4 percent, reaching AED290.7 billion.
Within resident deposits, private sector deposits increased by 1 percent, reaching AED2.273 trillion, and GRE deposits increased by 3.5 percent to AED306.7 billion.
At the same time, government sector deposits also increased by 2 percent to AED401.3 billion, while Other Financial Corporations (OFC) deposits decreased by 6.7 percent to AED65.3 billion at the end of January 2026.
Rise in currency in circulation supports M1
The report also showed an increase in UAE banks’ money supply aggregate M1 by 0.9 percent, from AED1.0715 trillion at the end of December 2025 to AED1.0813 trillion at the end of January 2026. The increase was supported by an increase in currency in circulation outside banks by 2.7 percent and in monetary deposits by 0.6 percent.
The money supply aggregate M2 increased by 1.3 percent, from AED2.75 trillion at the end of December 2025 to AED2.789 trillion at the end of January 2026, due to a AED25.3 billion rise in Quasi-Monetary Deposits.
Corporate sector deposits and individuals’ deposits also contributed the same to the overall growth of M2, having increased monthly by 0.9 percent and 1.5 percent, respectively.
Meanwhile, government-Related Entities (GREs) deposits increased by 3.6 percent, primarily driven by the growth of their AED demand and savings deposits. All sectors, except Other Financial Corporations (OFC), contributed positively to M2 growth. The monthly decline in OFC sector deposits by 7.1 percent moderated the growth of the overall aggregate.
Monetary base grows to AED900.8 billion
Finally, money supply aggregate M3 increased by 1.4 percent to AED3.3 trillion at the end of January 2026. Government sector deposits recorded a monthly increase of 2.2 percent, reaching AED511.7 billion.
The report concluded that the UAE banks’ monetary base increased by 0.6 percent to AED900.8 billion at the end of January 2026, driven by the growth in Reserve Requirements by 32.4 percent and currency issued by 1.7 percent. Meanwhile, Banks & OFCs Current Accounts & Overnight Deposits of Banks recorded a decline by 55.9 percent and moderated the growth of the overall aggregate.
Source: economymiddleeast
Image: gulfbusiness