The UAE's total bank credit rose by 0.9% to exceed AED2.259 trillion ($615 billion) at the end of April, compared to AED2.240 trillion at the end of March, according to the Monetary and Banking Developments Report for April issued by the Central Bank of the UAE.

 

The increase in domestic credit was due to a 0.7% increase in credit to the government sector, a 1.2% increase in credit to the public sector (government-related entities), and a 0.6% growth in credit to the private sector. Meanwhile, credit to non-bank financial institutions decreased by 4.3%.

 

The UAE's total banking assets, including bankers' acceptances, rose by 0.6% month-on-month (MoM) to exceed AED4.749 trillion at the end of April 2025, compared to AED4.719 trillion at the end of March.

 

This increase was attributed to an increase in domestic credit of AED12.3 billion and an increase in foreign credit of AED7.1 billion, said a WAM news agency report.

 

Total bank deposits also rose 1% month-on-month to exceed AED2.965 trillion at the end of April, compared to approximately AED2.936 trillion at the end of March.

 

This increase was attributed to a 0.1% increase in resident deposits to more than AED2.689 trillion, along with a 10.9% increase in non-resident deposits to AED275.6 billion.

 

Within resident deposits, government sector deposits increased by 0.9% and private sector deposits by 1.1%, while non-bank financial institution deposits declined by 9.2%, and government-related entity deposits decreased by 6.5% at the end of April 2025.

 

The Central Bank announced a 2.6% increase in M1 money supply to AED1,011.9 trillion at the end of April, compared to AED986.2 billion at the end of March. This was due to an increase in cash deposits of AED26.9 billion, which outweighed the AED1.2 billion decrease in currency in circulation outside banks.

 

Conversely, M2 money supply decreased by 0.1% to approximately AED2.435 trillion at the end of April, compared to approximately AED2.437.7 trillion at the end of March, due to a decline in quasi-cash deposits of AED27.8 billion.

Money supply (M3) rose by 0.2% from AED 2.893.7 trillion at the end of March to AED2.898.2 trillion at the end of April, due to a AED6.6 billion increase in government deposits.

 

The data showed a 1.7% decline in the monetary base, from AED833.1 billion at the end of March to AED819 billion at the end of April.

 

This decline was attributed to a 2.5% decline in foreign currency issued and a 32.0% decline in the reserve account, despite a significant 159.8% increase in current accounts of banks and other financial institutions and overnight deposits with the Central Bank, and a 3.1% increase in Islamic bills and certificates of deposit.