In February, the monetary and banking indicators in the UAE continued to show positive trends. The total banking assets increased by 1.1%, surpassing AED 5.472 trillion, compared to approximately AED 5.414 trillion at the end of January, as reported in the Monetary and Banking Developments report for February 2026 issued by the Central Bank.
The total credit rose by 1.2% from AED 2.598 trillion at the end of January, reaching over AED 2.63 trillion by the end of February, bolstered by a rise in domestic credit amounting to AED 20.6 billion.
This growth can be primarily attributed to a 1.3% increase in credit extended to the private sector, contributing approximately 0.8 percentage points to the overall growth. Additionally, there was a favorable 1.1% contribution from credit directed towards government-related entities, accounting for about 0.2 percentage points, although this growth was tempered by a 1.1% decrease in credit allocated to the government sector for the second consecutive month, resulting in a negative contribution of around 0.1 percentage points.
Deposits
Regarding deposits, the total banking deposits grew by 1.9%, reaching AED 3.4 trillion at the end of February 2026, up from around AED 3.337 trillion at the end of January, supported by a 1.7% increase in resident deposits that totaled AED 3.098 trillion.
Non-resident deposits also saw a rise of 3.8%, reaching AED 301.8 billion. Data on resident deposits indicated growth in most of their components, with private sector deposits increasing by 2.2% to reach AED 2.322 trillion, contributing the most to the overall growth at about 1.6 percentage points.
Deposits from government-related entities and other financial institutions contributed positively and equally, each adding roughly 0.2 percentage points, with respective increases of 1.8% and 10.3%. In contrast, government sector deposits declined by 2.3% to settle at AED 392 billion at the end of February.
In terms of the monetary base, it rose by 2% to AED 918.6 billion at the end of February, compared to AED 900.8 billion at the end of January, driven by a 33.6% increase in current accounts held by banks and other financial institutions and overnight deposits. The reserve accounts increased by 1.1%, and currency in circulation rose by 0.6%, although growth was somewhat restricted by a 4.3% decline in cash permits and Islamic certificates of deposit.
On the liquidity front, the money supply ‘M1’ increased by 1.7%, reaching approximately AED 1.1 trillion at the end of February, up from AED 1.081 trillion at the end of January, as a result of a 1.4% rise in cash in circulation outside the banks and a 1.8% increase in cash deposits.
Moreover, ‘M2’ grew by 2.4%, reaching roughly AED 2.857 trillion, supported by an increase of AED 48.5 billion in quasi-deposits. The corporate sector contributed the largest share of growth at 1 percentage point, with its deposits increasing by 2.1%, followed by individuals, who contributed 0.8 percentage points with a growth rate of 5.3% in their deposits.
Deposits from government-related entities also showed growth at 1.8%, contributing about 0.2 percentage points to the total growth, supported by an increase in demand deposits and savings deposits denominated in UAE dirhams. Additionally, deposits from other financial companies grew positively as well, rising by 13% largely due to an increase in foreign currency deposits.
Similarly, the ‘M3’ money supply increased by 1.6% to about AED 3.354 trillion at the end of February 2026, despite a 2.9% drop in government sector deposits, which fell to AED 496.9 billion and recorded a negative contribution of approximately 0.4 percentage points. Nevertheless, the growth in other deposit components offset this decline, supporting the overall increase in money supply.
Foreign Assets
According to the data, the Central Bank’s foreign assets surpassed AED 1.095 trillion at the end of February, compared to AED 1.084 trillion at the end of January. As of the end of February, the Central Bank’s foreign assets comprised AED 270.5 billion in banking balances and deposits with foreign banks, AED 762.6 billion in foreign securities, and around AED 62.6 billion in other assets.
The Central Bank’s budget exceeded AED 1.13 trillion at the end of February, distributed in liabilities and capital as follows: AED 555.5 billion in current accounts and deposit accounts, AED 292.9 billion in cash permits and Islamic certificates of deposit, AED 178.5 billion in issued banknotes and coins, and AED 19.9 billion in other liabilities, while capital and reserves reached AED 83.7 billion.
As for the balance sheet under assets, it was distributed with AED 220.4 billion in cash and banking balances, AED 64.9 billion in deposits, AED 789.3 billion in investments, and AED 55.9 billion in other assets.