Gross banks’ assets increased by 1.4% from AED 5,339.9 billion at the end of December 2025 to AED 5,413.6 billion 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% from AED 2,570.3 billion at the end of December 2025 to AED 2,598.2 billion at the end of January 2026.
Total credit growth was supported mostly by growth of domestic credit (by AED 27.9 billion), that is result of increase of credit to the private sector by 0.6% (contributed with 0.4 p.p. to overall growth of 1.1%) and credit to the government sector 2.5%. Growth of domestic credit was moderated by the decline in credit extended to OFC for 5.7%, that had negative contribution (for - 0.1 p.p.) to overall domestic credit growth.
Banks’ deposits increased by 0.9%, from AED 3,307.0 billion at the end of December 2025 to AED 3,336.8 billion at the end of January 2026. The increase in banks’ deposits was driven by the growth in resident deposits by 1.2% reaching AED 3,046.1 billion, while non-resident deposits declined by 2.4% reaching AED 290.7 billion, with a negative contribution (-0.2 p.p. from overall 0.9 % total growth).
Within the resident deposits: private sector deposits increased by 1.0% reaching 2,272.8 billion, GRE deposits increased by 3.5% reaching AED 306.7 billion. At the same time, government sector deposits also increased by 2.0% reaching AED 401.3 billion, while Other Financial Corporations (OFC) deposits decreased by 6.7% reaching AED 65.3 billion at the end of January 2026.
The report also showed an increase in money supply aggregate M1 by 0.9%, from AED 1,071.5 billion at the end of December 2025 to AED 1,081.3 billion at the end of January 2026. The increase was supported by an increase in currency in circulation outside banks by 2.7% and in monetary deposits by 0.6%.
The money supply aggregate M2 increased by 1.3%, from AED 2,754.7 billion at the end of December 2025 to AED 2,789.8 billion at the end of January 2026, due to AED 25.3 billion growth in Quasi-Monetary Deposits. The corporate sector deposits and individuals’ deposits contributed the same (by 0.5 p.p. each) to overall growth of M2, having monthly increased by 0.9% and 1.5%, respectively.
Government-Related Entities (GREs) deposits increased by 3.6% contributed to the growth by 0.4 p.p. 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% (mostly foreign currency saving deposits) moderated the growth of the overall aggregate.
Money supply aggregate M3 increased by 1.4%, from AED 3,255.4 billion at the end of December 2025 to AED 3,301.5 billion at the end of January 2026. Government sector deposits recorded monthly increase by 2.2%, reaching AED 511.7 billion, contributing by 0.3 p.p, to growth of M3.
The monetary base increased by 0.6%, from AED 895.7 billion at the end of December 2025 to AED 900.8 billion at the end of January 2026. The increase was driven by the growth in: Reserve Requirements by 32.4% and currency issued by 1.7%. Banks & OFCs Current Accounts & Overnight Deposits of Banks recorded decline by 55.9% and moderated the growth of overall aggregate.
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