Stable Growth in UAE Banking Sector Pushes Assets to AED 5.25 Trillion by End of November

Abu Dhabi | EcoPulse24

The UAE banking sector showed continued balance sheet expansion in November 2025, with total banking assets reaching AED 5.251 trillion - a monthly growth of 0.8% from AED 5.208 trillion at the end of October, according to the latest data from the Central Bank of the UAE.

This performance reflects gradual improvement in credit activity and liquidity, as total bank credit increased by 0.7% to AED 2.532 trillion. This was driven by a rise in domestic credit by about AED 9 billion and foreign credit by approximately AED 8.7 billion.

Sector-wise, domestic credit growth was led by:

• An increase in credit to the government sector by 2.6%
• Growth in private sector credit by 0.4%
• A 3.6% rise in credit to non-banking financial institutions, despite a 1% decrease in credit to government-related entities.

Bank deposits also continued to grow, rising 1% to AED 3.236 trillion, supported by a 1.4% increase in resident deposits to AED 2.971 trillion, while non-resident deposits declined by 2.4% to AED 265.4 billion.

Resident deposit increases were seen across most components, including:

• Government sector deposits at AED 439.2 billion
• Private sector deposits at AED 2.187 trillion
• Deposits of government-related entities at AED 282.7 billion
• Non-banking financial institutions at AED 62.0 billion

On the monetary policy front, the monetary base increased by 1.7% to AED 850.1 billion, driven by higher bank reserve accounts, currency in circulation, and Islamic certificates of deposit, despite a decline in current accounts and overnight deposits at the central bank.

Narrow money supply (M1) fell by 1.7%, while broad money supply (M2 and M3) expanded by 1.5% each, reflecting a shift in liquidity structure toward quasi-government and quasi-money deposits.

Notably, the central bank's foreign assets exceeded the AED 1 trillion mark by the end of November, compared to AED 991.6 billion at the end of October, mainly concentrated in foreign securities and balances with overseas banks.

The central bank's balance sheet also surpassed AED 1.046 trillion, distributed among investments, cash and bank balances, monetary bills, and Islamic certificates of deposit, highlighting financial strength and flexible liquidity management.