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The Central Bank of the UAE report on monetary and banking developments for May 2026 outlined expansion in money supply measures. M1 reached Dh1,053.5 billion with Dh167.6 billion in currency outside banks and Dh885.9 billion in monetary deposits. M2 totaled Dh2,853.9 billion supported by a rise in dirham deposits to Dh1,135.4 billion in the quasi-money category. M3 stood at Dh3,393.4 billion following growth in government sector deposits to Dh539.5 billion.
The monetary base amounted to Dh848.5 billion at the end of May while reserve balances with the Central Bank jumped 49.4 percent to Dh295.4 billion, the report showed. Gross credit rose 0.5 percent or Dh12.3 billion to Dh2,733.1 billion over the same period from April. This growth occurred alongside the asset increase detailed in the May data.
Domestic credit provided the impetus for the credit expansion with an increase of Dh13.8 billion even as foreign credit declined marginally to Dh562.5 billion according to Central Bank figures. All sectors registered positive contributions to domestic credit growth. The private sector led with a Dh4.6 billion increase divided equally between corporate and individual borrowers each adding 0.2 percentage points while government-related entities saw credit rise by Dh3.5 billion or 1.0 percent contributing another 0.2 percentage points.
Banks deposits reached Dh3,463.4 billion by the end of May the report stated. Non-resident deposits grew 3.6 percent to Dh318.6 billion during the month. Deposits from other financial corporations advanced 2.4 percent to Dh67.2 billion and added 0.1 percentage points to the overall movement in deposits.
A review of UAE banking sector performance placed total assets at approximately Dh5.4 trillion by the end of 2025 according to Central Bank statistics reported by Khaleej Times. S&P Global Ratings projected GDP growth of about 4.7 percent for 2026 following an estimated 4.5 percent in 2025 with benefits expected from non-oil sectors. The Central Bank of the UAE continues to issue monthly reports tracking these financial indicators.
