The Central Bank of the UAE (CBUAE) has reported that gross banks’ assets, which include bankers’ acceptances, rose by 1.3% from AED4.4 trillion at the end of September 2024 to exceed AED4.456 trillion by the end of October 2024. This information was detailed in the Monetary & Banking Developments – October 2024 report released by the CBUAE.

According to the report, gross credit also saw an increase of 0.6%, moving from AED2,161.9 billion at the end of September 2024 to AED2,174.8 billion at the end of October 2024. This growth was attributed to a rise in domestic credit by 0.6% and foreign credit by 0.7%. Specifically, domestic credit expanded as a result of a 0.2% increase in credit to the government sector, a 3.0% rise in public sector credit, and a 0.1% increase in private sector credit, despite a decline of 1.8% in non-banking financial institutions.

Furthermore, banks’ deposits climbed by 1.5%, from AED2,761.4 billion at the end of September 2024 to AED2,802.5 billion at the end of October 2024. This overall growth in bank deposits was driven by a 1.2% increase in resident deposits and a notable 4.7% rise in non-resident deposits. The increase in resident deposits was supported by a 2.3% growth in government sector deposits, a 3.6% rise in government-related entity deposits, and a 1.1% increase in private sector deposits, despite a significant 13.0% drop in non-banking financial institutions deposits.

The Central Bank also noted that the money supply aggregate M1 rose by 1.5%, increasing from AED896.3 billion at the end of September 2024 to AED909.9 billion at the end of October 2024. This rise was primarily driven by a growth of AED14.9 billion in monetary deposits, which outweighed a decline of AED1.3 billion in currency in circulation outside banks.

Additionally, the money supply aggregate M2 saw a 0.9% increase, going from AED2,249.6 billion at the end of September 2024 to AED2,270.7 billion by the end of October 2024. This increase in M2 was influenced by the elevated M1 and an additional AED7.5 billion growth in Quasi-Monetary Deposits. The M3 aggregate also increased by 1.3% from AED2,719.8 billion at the end of September 2024 to AED2,754.7 billion at the end of October 2024, mainly driven by the growth in M2 and a rise of AED13.8 billion in government deposits.

Lastly, the monetary base experienced a slight decrease of 0.1%, falling from AED743.5 billion at the end of September 2024 to AED743.0 billion at the end of October 2024. This decline was primarily a result of an 11.4% decrease in banks and other financial institutions’ current accounts and overnight deposits at the CBUAE, despite increases in currency issued by 0.8%, reserve account by 0.05%, and monetary bills and Islamic certificates of deposit by 6.2%.