By the end of the first half of 2025, the total assets of banks in the UAE reached 5 trillion dirhams, reflecting a month-on-month growth of 1.9% in June compared to the cumulative balance recorded in May of the same year.
According to data released by the central bank, total banking deposits experienced a monthly increase of 0.9%, rising from a total of 3.018 trillion dirhams in May to approximately 3.046 trillion dirhams in June. This growth in deposits from residents was complemented by a 1.7% uptick, offsetting a slight decline in non-resident deposits.
Deposits from Residents
Further analysis in the banking developments report indicates that the growth in resident deposits was driven by an increase in deposits from non-banking financial institutions by 26.7%, alongside a 2.3% rise in government-linked institution deposits and a 1.7% growth in private sector deposits.
Conversely, total credit climbed by 1.8% month-on-month to reach 2.334 trillion dirhams due to increases in both domestic credit, which rose by 22.5 billion dirhams, and non-local credit, which grew by 18.4 billion dirhams.
The rise in domestic credit was fuelled by a 4.6% increase in credit to non-banking financial institutions and a 2.1% growth in the private sector, mitigating declines observed in government and public sector credit.
The report also highlighted a 2.8% month-on-month rise in the cash base to 836.7 billion dirhams in June, driven by growth in reserve accounts and current accounts of banks and other financial institutions, as well as deposits held with the central bank.