UAE Banking Assets Surpass AED 5.633 Trillion in May as Credit Continues to Expand

Abu Dhabi | EcoPulse24

The United Arab Emirates' banking sector continued to expand in May 2026, with total banking assets, including bankers' acceptances, rising 1.1% month-on-month to exceed AED 5.633 trillion, according to the Central Bank of the UAE's latest Monetary and Banking Developments report.

The data also showed continued growth in bank credit, deposits and money supply, while domestic fund transfers surpassed AED 11.5 trillion during the first five months of the year, highlighting sustained financial activity across the economy.

Bank Credit Rises to AED 2.733 Trillion

Total bank credit increased by AED 12.3 billion, or 0.5%, reaching approximately AED 2.733 trillion at the end of May, compared with around AED 2.72 trillion at the end of April.

The increase was driven by a AED 13.8 billion rise in domestic credit, while foreign credit had a negative contribution of 0.1 percentage point, with outstanding foreign credit standing at AED 562.5 billion.

All major domestic lending sectors contributed positively to the monthly increase.

Private Sector Remains the Main Growth Driver

Private-sector lending remained the primary engine of domestic credit growth.

Credit extended to businesses increased by approximately AED 4.6 billion, while lending to individuals also rose by AED 4.6 billion, with each contributing around 0.2 percentage point to total domestic credit growth.

Credit extended to government-related entities increased by AED 3.5 billion, or 1%, contributing an additional 0.2 percentage point to domestic credit expansion.

Bank Deposits Reach AED 3.463 Trillion

Total bank deposits climbed to AED 3.463 trillion at the end of May.

The continued increase in deposits reflects the strong funding base of the UAE banking sector alongside expanding assets and lending activity.

Money Supply Remains Elevated

The narrow money supply (M1) stood at approximately AED 1.054 trillion at the end of May.

Currency in circulation outside banks totaled AED 167.6 billion, while monetary deposits remained broadly stable at AED 885.9 billion.

The broader money supply (M2) remained broadly unchanged at approximately AED 2.854 trillion.

Growth in dirham-denominated quasi-monetary deposits, which reached AED 1.135 trillion, contributed positively to changes in M2 during the month.

Meanwhile, M3 increased 0.4% to approximately AED 3.393 trillion, supported by a rise in government deposits to AED 539.5 billion.

Monetary Base Reaches AED 848.5 Billion

The UAE's monetary base totaled AED 848.5 billion at the end of May.

Bank reserves held with the Central Bank recorded a notable 49.4% increase, reaching AED 295.4 billion, representing one of the strongest monthly movements within the monetary base components.

Domestic Fund Transfers Exceed AED 11.5 Trillion

The cumulative value of domestic fund transfers processed through the UAE Funds Transfer System (UAEFTS) reached AED 11.502 trillion during the first five months of 2026.

The total comprised:

During May alone, transfers totaled approximately AED 2.118 trillion, including:

• AED 1.199 trillion executed by banks.

• AED 919.1 billion executed by customers.

Central Bank Gold Holdings Near AED 40 Billion

The Central Bank's monthly statistical bulletin showed that its gold holdings reached AED 39.937 billion at the end of May 2026.

The increase reflects the continued significance of gold within the Central Bank's balance sheet alongside broader reserve assets.

Key Banking Indicators – May 2026

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The latest Central Bank figures point to continued expansion across the UAE banking system, with assets, credit and deposits all recording further growth during May. Lending to businesses and households remained the principal driver of domestic credit expansion, indicating sustained financing demand from the private sector.

At the same time, the sharp increase in bank reserves held at the Central Bank and domestic fund transfers exceeding AED 11.5 trillion during the first five months of 2026 underscore the depth of liquidity and payment activity within the UAE financial system. These indicators will remain closely watched as gauges of credit conditions, banking-sector liquidity and broader economic momentum.