Abu Dhabi: The Central Bank of the UAE (CBUAE) announced that the money supply (M1) grew by 1.8%. It went up from AED 965.3 billion at the end of January 2025 to AED 982.9 billion at the end of February 2025. This increase was due to AED 4.1 billion in cash outside banks and an AED 13.5 billion increase in monetary deposits.
According to the Central Bank’s report on Monetary & Banking Developments for February 2025, the money supply (M2) grew by 1.8%. It increased from AED 2,319.3 billion at the end of January 2025 to AED 2,361.9 billion at the end of February 2025.
This rise in M2 was mainly due to the growth in M1 and an AED 25.0 billion increase in Quasi-Monetary Deposits.
The money supply (M3) also grew by 0.8%, rising from AED 2,789.8 billion at the end of January 2025 to AED 2,813.4 billion at the end of February 2025.
This increase in M3 was mainly due to the growth in M2, which more than made up for the AED 19.0 billion decrease in government deposits.
The monetary base grew by 3.1%, increasing from AED 791.9 billion at the end of January 2025 to AED 816.6 billion at the end of February 2025.
This growth was driven by a 3.4% rise in currency issued, an 11.4% increase in banks and other financial companies’ current accounts and overnight deposits at the CBUAE, and a 6.2% rise in monetary bills and Islamic certificates of deposit. These increases more than offset a 6.1% decrease in reserve accounts.
Gross bank assets, including bankers’ acceptances, grew by 1.6%. They increased from AED 4,562.3 billion at the end of January 2025 to AED 4,636.8 billion at the end of February 2025.
Gross credit grew by 0.9%, increasing from AED 2,186.3 billion at the end of January 2025 to AED 2,205.1 billion at the end of February 2025. This increase was due to a rise in domestic credit by AED 1.7 billion and a rise in foreign credit by AED 17.1 billion.
The growth in domestic credit was driven by a 0.7% increase in credit to the private sector and a 5.2% increase in credit to non-banking financial institutions. However, credit to the public sector (government-related entities) decreased by 2.0%, and credit to the government sector dropped by 1.4%.
Bank deposits grew by 1.2%, rising from AED 2,840.7 billion at the end of January 2025 to AED 2,874.6 billion at the end of February 2025.
This increase was due to a 0.8% rise in resident deposits, which reached AED 2,625.5 billion, and a 5.1% rise in non-resident deposits, which reached AED 249.1 billion.
In resident deposits, deposits from government-related entities rose by 3.8%, private sector deposits increased by 1.4%, and non-banking financial institutions’ deposits grew by 5.6%. However, deposits to the government sector decreased by 4.0% by the end of February 2025.
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