The Central Bank of the UAE (CBUAE) has reported a 0.5% increase in gross banks’ assets, including bankers’ acceptances, reaching Dh4.40 trillion by the end of September 2024, up from Dh4.37 trillion at the end of August 2024.
According to the bank’s Monetary & Banking Developments Report for September 2024, gross credit saw a 2.3% rise to Dh2.16 trillion. This increase was driven by a 1.6% growth in domestic credit and a significant 6.9% boost in foreign credit.
The domestic credit surge was attributed to increases in various sectors: the government sector by 0.4%, the public sector by 2.7%, the private sector by 1.5%, and non-banking financial institutions by 1.8%.
Additionally, banks’ deposits grew by 0.8%, from Dh2.74 trillion in August 2024 to Dh2.76 trillion in September 2024, with resident deposits increasing by 0.8% and non-resident deposits by 0.5%.
Resident deposit growth was mainly due to a 4.9% rise in government-related entity deposits, a 0.8% increase in private sector deposits, and a significant 20.5% growth in non-banking financial institutions deposits, despite a 3.9% decrease in government sector deposits.
The money supply aggregate M1 rose by 0.9%, reaching Dh896.3 billion, influenced by Dh2.0 billion in currency circulation outside banks and Dh6.3 billion in monetary deposits. M2 increased by 1.7% to Dh2.25 trillion, driven by the M1 rise and a Dh30.0 billion increase in Quasi-Monetary Deposits. M3 also grew by 0.9% to Dh2.71 trillion, primarily due to the M2 expansion, despite a Dh15 billion drop in government deposits.
The monetary base expanded by 1.2%, reaching Dh743.5 billion in September 2024. This growth was fueled by a 1% increase in currency issued and a 39.2% rise in banks and OFCs’ current accounts and overnight deposits at CBUAE, counterbalancing a 14.1% decrease in reserve accounts.
Monetary bills and Islamic certificates of deposit remained steady at Dh240.9 billion.
