UAE Banks' Assets Hit $1.24 Trillion in Dec 2024: CBUAE

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UAE Banks’ Total Assets Reach $1.24 Trillion In December 2024, Says CBUAE

The total assets of UAE banks, including bankers’ acceptances, grew by 2.4% to more than $1.24 trillion (AED 4.56 trillion) at the end of December 2024, up from $1.21 trillion (AED 4.45 trillion) in November, the Central Bank of the UAE (CBUAE) said on Thursday.

UAE Banks

According to the Central Bank of the UAE’s report for December 2024, the total loans given by UAE banks went up by 0.8%, reaching $593.8 billion (AED 2.18 trillion), compared to $589 billion (AED 2.16 trillion) in November.

This increase happened because loans to foreign borrowers rose by 8.3%, which was more than enough to cover a small 0.4% drop in loans inside the UAE.

The fall in local loans happened because:

Loans to government-related companies dropped by 2.5%.
Loans to private companies went down by 0.2%.
Loans to non-bank financial companies fell by 2.5%.

However, loans to the government itself increased by 1.6%.

Deposits Growing

Bank deposits grew by 1.5%, reaching $775.2 billion (AED 2.85 trillion) at the end of December 2024, up from $763.6 billion (AED 2.8 trillion) in November.

This growth was due to:

A 0.5% rise in deposits from UAE residents.
A large 13.9% rise in deposits from non-residents.

For resident deposits:

Deposits from government-related companies went up by 4.2%.
Deposits from private companies rose by 0.9%.
Deposits from non-bank financial institutions jumped by 16.5%.

However, deposits from the government sector dropped by 5.2%.

Money Supply Increased

The money supply (M1), which is cash and deposits people can quickly use, grew by 2.3% to $257.7 billion (AED 946.4 billion). This was because:

Cash outside banks increased by $299.5 million (AED 1.1 billion).
Deposits people can use immediately increased by $5.6 billion (AED 20.6 billion).

The broader money supply (M2), which includes M1 plus longer-term deposits, rose by 1.7% to $631 million (AED 2.32 billion). This was thanks to:

The rise in M1.
A $4.63 billion (AED 17 billion) increase in longer-term (quasi-monetary) deposits.

The total money supply (M3), which includes M2 and government deposits, went up by 0.4% to $756.6 billion (AED 2.77 trillion). This increase happened because of the rise in M2 and a $7.4 billion (AED 27.1 billion) drop in government deposits.

Monetary Base

The monetary base (the core money supply managed by the central bank) rose by 4.4% to $212.6 billion (AED 780.6 billion) at the end of December, up from $203.7 billion (AED 748 billion) in November.

This growth was caused by:

A small 0.1% increase in currency issued.
A 0.6% rise in reserve accounts.
A big 23.7% jump in banks’ and financial institutions’ current accounts and overnight deposits at the central bank.
A 4.1% increase in monetary bills and Islamic certificates of deposit.

Published: 17th March 2025

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