The Central Bank of the UAE reported growth across key money supply aggregates in February 2025, with increases in deposits, credit, and the monetary base.
M1 rose 1.8% month-on-month to Dh982.9 billion, driven by a Dh4.1 billion increase in currency in circulation outside banks and a Dh13.5 billion rise in monetary deposits. M2 also grew by 1.8%, reaching Dh2.36 trillion, supported by M1 growth and a Dh25 billion increase in quasi-monetary deposits.
M3 expanded by 0.8% to Dh2.81 trillion, as gains in M2 outweighed a Dh19 billion decline in government deposits.
The monetary base increased by 3.1% to Dh816.6 billion. This was attributed to a 3.4% rise in the currency issued, an 11.4% rise in banks and other financial corporations’ current accounts and overnight deposits at the central bank, and a 6.2% increase in monetary bills and Islamic certificates of deposit. These offset a 6.1% decline in the reserve account.
Gross bank assets, including bankers’ acceptances, rose 1.6% to Dh4.63 trillion. Gross credit increased 0.9% to Dh2.20 trillion, supported by Dh1.7 billion growth in domestic credit and Dh17.1 billion in foreign credit. Within domestic credit, lending to the private sector increased by 0.7% and to non-banking financial institutions by 5.2%.
Credit to government-related entities declined by 2.0%, and credit to the government sector dropped by 1.4%.
Total bank deposits grew 1.2% to Dh2.87 trillion, led by a 0.8% increase in resident deposits to Dh2.62 trillion and a 5.1% rise in non-resident deposits to Dh249.1 billion.
Within resident deposits, those from government-related entities increased 3.8%, private sector deposits rose 1.4%, and non-banking financial institutions’ deposits climbed 5.6%. Deposits from the government sector declined 4.0% in the same period.
