The UAE’s money supply aggregates expanded in March 2025, with M1, M2, and M3 all registering month-on-month gains, according to the latest data from the Central Bank of the UAE (CBUAE).
M1, which includes currency in circulation and monetary deposits, rose 0.4% from Dh982.4 billion in February to Dh986.2 billion in March. The increase was driven by a Dh5.1 billion rise in currency in circulation, which offset a Dh1.4 billion decline in monetary deposits.
M2, which includes M1 and quasi-monetary deposits, increased by 3.3% to Dh2.43 trillion. The growth was attributed to both the rise in M1 and a Dh73.8 billion jump in quasi-monetary deposits.
M3, which includes M2 and government deposits, rose 2.9% to Dh2.89 trillion. The expansion was supported by the growth in M2 and a Dh4.5 billion increase in government deposits.
The monetary base grew 2.0% over the month to Dh833.1 billion. This was driven by a 4.1% rise in currency issued and a 62.0% surge in reserve accounts. These gains outweighed declines in banks and other financial corporations’ current and overnight deposits at the CBUAE (down 64.2%) and in monetary bills and Islamic certificates of deposit (down 6.3%).
The gross assets of banks operating in the UAE, including bankers’ acceptances, reached Dh4.71 trillion by the end of March, marking a 1.9% increase from Dh4.63 trillion in February.
Gross credit extended by banks rose 1.6% to Dh2.24 trillion. This increase was driven by a combined Dh35.7 billion gain across domestic and foreign credit. Domestic credit increased by Dh19.5 billion, driven by rises in lending to government-related entities (up 0.2%), the private sector (up 1.4%), and non-banking financial institutions (up 1.9%). Credit to the government sector fell 0.3%.
Bank deposits rose 2.3% month-on-month, reaching Dh2.93 trillion. Resident deposits rose 2.4% to Dh2.68 trillion, while non-resident deposits edged up 0.4% to Dh248.6 billion. Within resident deposits, government-related entities saw a 4.3% increase, private sector deposits rose 3.1%, and deposits from non-banking financial institutions increased 5.1%. Government deposits fell 2.3% over the period.
