The assets of UAE banks continue to grow and exceed 5.41 trillion dirhams by the end of January

Monetary and banking indicators in the UAE continued to record positive performance at the beginning of 2026, as total banking assets increased by 1.4% to exceed 5.413 trillion dirhams at the end of January 2026, compared to about 5.339 trillion dirhams at the end of December 2025, according to the Monetary and Banking Developments Report for January issued by the Central Bank, today. According to the report, total credit increased by 1.1%, from about 2.57 trillion dirhams at the end of December, to exceed 2.598 trillion dirhams by the end of January 2026, supported by an increase in domestic credit worth 27.9 billion dirhams.

The growth of local credit is due to an increase in credit granted to the government sector by 2.5%, and to the private sector by 0.6%, which contributed about 0.4 percentage points to the total growth, while this growth was limited by the decline in credit granted to other financial institutions by 5.7%, recording a negative contribution of about 0.1 percentage points.

Regarding deposits, total bank deposits increased by 0.9% to reach about 3.337 trillion dirhams at the end of January 2026, compared to 3.307 trillion dirhams at the end of December, supported by an increase in resident deposits by 1.2% to reach 3.046 trillion dirhams, while non-resident deposits decreased by 2.4% to reach 290.7 billion dirhams, recording a negative contribution of about 0.2%. Percentage point of total deposit growth.

The data showed growth in most components of residents’ deposits, as private sector deposits rose 1% to about 2.273 trillion dirhams, and deposits of government-related entities rose 3.5% to reach 306.7 billion dirhams. Government sector deposits also rose 2% to 401.3 billion dirhams, while deposits of other financial institutions decreased by 6.7% to settle at 65.3 billion dirhams.

The monetary base rose by 0.6% to 900.8 billion dirhams at the end of January 2026, compared to 895.7 billion dirhams at the end of December, driven by an increase in the reserve account by 32.4%, and cash issued by 1.7%, despite the decline in the current accounts of banks and other financial institutions and overnight deposits with the Central Bank by 55.9%.

According to data on monetary and banking developments, the money supply “M1” increased by 0.9%, reaching 1.081 trillion dirhams at the end of January 2026, compared to 1.071 trillion dirhams at the end of December, as a result of an increase in cash in circulation outside banks by 2.7% and cash deposits by 0.6%.

Money supply M2 also rose by 1.3% to reach about 2.79 trillion dirhams, supported by an increase in quasi-cash deposits worth 25.3 billion dirhams, as both the corporate sector and individual deposits contributed about 0.5 percentage points each to the total growth, with monthly increases of 0.9% and 1.5%, respectively.

Deposits of government-related entities recorded a growth of 3.6%, contributing about 0.4 percentage points to the total growth in money supply (M2), supported by an increase in demand deposits and savings deposits in dirhams, while growth was limited by a decline in the deposits of other financial companies by 7.1% as a result of a decrease in savings deposits in foreign currencies.

Money supply “M3” increased by 1.4% to exceed 3.301 trillion dirhams at the end of January 2026, supported by the growth of money supply “M2” and an increase in government sector deposits by 2.2% to reach 511.7 billion dirhams, contributing about 0.3 percentage points to the total growth.

In addition, according to data issued today, the Central Bank’s foreign assets exceeded 1.084 trillion dirhams at the end of January 2026, compared to 1.058 billion dirhams at the end of December 2025.

The Central Bank’s foreign assets, as at the end of January, were distributed at 285.5 billion dirhams in bank balances and deposits with banks abroad, 740.9 billion dirhams in foreign securities, and 58 billion dirhams in other foreign assets.

The Central Bank’s balance sheet exceeded 1.119 trillion dirhams, distributed in the category of liabilities and capital, with 533.4 billion dirhams in current and deposit accounts, 306 billion dirhams for cash bills and Islamic certificates of deposit, 177.4 billion dirhams for issued banknotes and coins, and 24.9 billion dirhams for other liabilities, and capital and reserves amounted to 77.6 billion. Dirham.

As for the Central Bank’s balance sheet – asset class, it was distributed at 224.2 billion dirhams in cash and bank balances, 76.2 billion dirhams in deposits, 767.6 billion dirhams in investments, and 51.3 billion dirhams in other assets.