Banking assets increased to 5.472 trillion dirhams by the end of February

Monetary and banking indicators in the UAE continued their positive performance during the month of February.

Total banking assets increased by 1.1% to reach more than 5.472 trillion dirhams, compared to about 5.414 trillion dirhams at the end of the previous January, according to the Monetary and Banking Developments Report for February 2026 issued by the Central Bank.

Total credit also increased by 1.2% from 2.598 trillion dirhams at the end of January to reach more than 2.63 trillion dirhams at the end of February, supported by an increase in domestic credit worth 20.6 billion dirhams. This growth is mainly due to an increase in credit granted to the private sector by 1.3%, contributing about 0.8 percentage points to the total growth, in addition to a positive contribution of credit directed to government-related entities by 1.1% and about 0.2 percentage points, while this growth was limited by a decline in credit granted to the government sector by 1.1% for the second month in a row, recording a negative contribution of about 0.1 percentage points.

Regarding deposits, total bank deposits increased by 1.9% to reach 3.4 trillion dirhams at the end of February 2026, compared to about 3.337 trillion dirhams at the end of January, supported by a growth in residents’ deposits by 1.7% to reach 3.098 trillion dirhams. Non-resident deposits also increased by 3.8%, reaching 301.8 billion dirhams. Data on residents’ deposits showed growth in most of their components, as private sector deposits rose by 2.2% to reach 2.322 trillion dirhams, contributing the largest share of the growth by about 1.6 percentage points.

Deposits of government-related entities and other financial institutions contributed positively and similarly by about 0.2 percentage points each, with increases of 1.8% and 10.3%, respectively, while government sector deposits decreased by 2.3% to settle at 392 billion dirhams at the end of February.

In terms of the monetary base, it rose by 2% to reach 918.6 billion dirhams at the end of February, compared to 900.8 billion dirhams at the end of January, driven by an increase in current accounts of banks and other financial institutions and overnight deposits by 33.6%, in addition to an increase in the reserve account by 1.1% and cash issued by 0.6%, while the decline in cash bills and Islamic certificates of deposit by 4.3% limited growth.

With regard to cash liquidity, the money supply “M1” increased by 1.7%, reaching about 1.1 trillion dirhams at the end of February, compared to 1.081 trillion dirhams at the end of January, as a result of an increase in cash in circulation outside banks by 1.4% and cash deposits by 1.8%. Money supply “M2” also increased by 2.4% to reach about 2.857 trillion dirhams, supported by an increase in quasi-cash deposits worth 48.5 billion dirhams, as the corporate sector contributed the largest share of the growth by 1 percentage point, with its deposits increasing by 2.1%, followed by individuals with a contribution of 0.8 percentage points, with their deposits growing by 5.3%.

Deposits of government-related entities recorded a growth of 1.8%, contributing about 0.2 percentage points to the total growth, supported by an increase in demand and savings deposits in UAE dirhams, while deposits of other financial institutions also contributed positively with an increase of 13%, mainly driven by an increase in deposits in foreign currencies.

Likewise, the money supply “M3” increased by 1.6% to reach about 3.354 trillion dirhams at the end of February 2026, despite a decline in government sector deposits by 2.9% to reach 496.9 billion dirhams, recording a negative contribution of about 0.4 percentage points. However, this decline was offset by growth in the rest of the other deposit components, which supported the overall increase in the money supply.

According to data issued today, the Central Bank’s foreign assets exceeded 1.095 trillion dirhams at the end of February, compared to 1.084 trillion dirhams at the end of the previous January, distributed by 270.5 billion dirhams in bank balances and deposits with banks abroad, 762.6 billion dirhams in foreign securities, and about 62.6 billion dirhams in other assets.

The Central Bank’s budget exceeded 1.13 trillion dirhams at the end of February, distributed in the category of liabilities and capital by 555.5 billion dirhams in current and deposit accounts, 292.9 billion dirhams in cash bills and Islamic certificates of deposit, 178.5 billion dirhams in issued banknotes and coins, and 19.9 billion dirhams in other liabilities, while capital and reserves amounted to 83.7 billion. Dirham.

As for the balance sheet in the asset category, it was distributed at 220.4 billion dirhams in cash and bank balances, 64.9 billion dirhams in deposits, 789.3 billion dirhams in investments, and 55.9 billion dirhams in other assets.