The Central Bank of the UAE (CBUAE) announced an increase in gross bank assets, including bankers’ acceptances, by 1.3%, reaching over Dh4.456 trillion by the end of October 2024, as reported by the monthly Monetary & Banking Developments report.
Gross credit rose by 0.6% to Dh2,174.8 billion, driven by a 0.6% increase in domestic credit and a 0.7% rise in foreign credit. Domestic credit expansion was attributed to higher lending to the government sector (0.2%), public sector entities (3.0%), and the private sector (0.1%), despite a 1.8% decline in non-banking financial institutions.
Bank deposits saw a 1.5% increase, totalling Dh2,802.5 billion. This was due to a 1.2% rise in resident deposits and a 4.7% increase in non-resident deposits.
Resident deposits grew with contributions from the government sector (2.3%), government-related entities (3.6%), and private sector deposits (1.1%), which offset a 13.0% decrease in non-banking financial institution deposits.
The money supply aggregate M1 grew by 1.5% to Dh909.9 billion, largely due to a Dh14.9 billion rise in monetary deposits. M2 increased by 0.9% to AED2,270.7 billion, influenced by a growing M1 and Dh7.5 billion in quasi-monetary deposits. M3 saw a 1.3% increase to Dh2,754.7 billion, driven by M2 growth and a Dh13.8 billion rise in government deposits.
The monetary base slightly decreased by 0.1% to Dh743.0 billion, influenced by an 11.4% reduction in banks’ current accounts and overnight deposits at the CBUAE, with minor increases in currency issuance, reserve accounts, and Islamic certificates of deposit.
