The Central Bank of the UAE (CBUAE) reported that gross banks’ assets, including bankers’ acceptances, grew by 0.7%, reaching Dh4.37 trillion by the end of August 2024, up from Dh4.34 trillion in July.
Gross credit increased by 0.5% to Dh2.11 trillion in August, driven by a 0.5% rise in domestic credit and a 0.8% increase in foreign credit. Domestic credit growth was fueled by a 0.8% rise in private sector credit, offsetting decreases in public sector (government-related entities) credit by 0.3% and non-banking financial institutions credit by 3.0%. Credit to the government sector remained unchanged.
Bank deposits rose by 0.2% to Dh2.74 trillion in August, with resident deposits growing by 0.8%, compensating for a 6.4% decline in non-resident deposits. Resident deposit growth was supported by increases in government sector deposits (2.6%), private sector deposits (1.2%), and non-banking financial institutions deposits (4.2%), despite a 5.9% drop in government-related entities deposits.
The money supply aggregate M1 fell by 0.1% to Dh888 billion due to decreases in currency in circulation and monetary deposits. M2 grew by 0.2% to Dh2.21 trillion, driven by a Dh6.5 billion rise in quasi-monetary deposits, while M3 increased by 0.8% to Dh2.69 trillion due to growth in M2 and a Dh15.1 billion rise in government deposits.
The monetary base expanded by 2.3% to Dh734.9 billion, with increases in currency issued (0.6%), reserve account (6.2%), and monetary bills & Islamic certificates of deposit (6.1%), overriding a 10.2% reduction in banks’ and OFCs’ current accounts and overnight deposits at CBUAE.
