UAE Banks’ Assets Surge 1.1% to AED 5.6 Trillion in May 2026
By ThePip Desk
UAE’s banking sector assets climbed 1.1% to AED 5,633.1 billion in May 2026, fueled by domestic credit expansion and a significant rise in bank reserves with the CBUAE.
Gross assets held by banks in the United Arab Emirates saw a notable increase, rising by 1.1% to reach AED5,633.1 billion by the close of May 2026. This expansion marks a significant development within the nation’s financial landscape, as reported by the Central Bank of the UAE.
Detailing the Asset and Credit Expansion
The Central Bank’s “Monetary and Banking Developments – May 2026” report confirmed this growth, noting an uptick from AED5,570.1 billion recorded in April 2026. This overall asset rise was underpinned by an increase in gross credit across the banking system.
- Gross credit increased by AED12.3 billion, representing a 0.5% rise, to total AED2,733.1 billion.
- Domestic credit alone expanded by AED13.8 billion, contributing significantly to the overall credit growth.
- Reserve Balances of Banks with the CBUAE experienced a substantial 49.4% surge, reaching AED295.4 billion.
Drivers of Domestic Credit Growth
The expansion in domestic credit was broad-based, with positive contributions observed across all sectors. A key factor was the increased lending directed towards the private sector, encompassing both corporate entities and individuals.
Furthermore, Government Related Entities (GREs) also received increased lending, playing a role in the overall domestic credit surge. This indicates a robust demand for financing from various segments of the UAE economy.
Shifts in Money Supply and Deposits
Beyond assets and credit, the report also detailed upward trends across the money supply aggregates, reflecting changes in the liquidity within the economy. Banks’ deposits also showed overall growth, with contributions from resident and non-resident sources.
- Money supply M1 reached AED1,053.5 billion.
- Money supply M2 stood at AED2,853.9 billion.
- Money supply M3 climbed to AED3,393.4 billion.
- Total banks’ deposits amounted to AED3,463.4 billion.
- Non-resident deposits grew by 3.6% to AED318.6 billion.
These figures from the Central Bank of the UAE highlight continued expansion within the nation’s banking sector during May 2026. The growth in assets, credit, and money supply aggregates points to dynamic financial activity across the country.