The UAE’s money supply increased by 1.8% in February, reaching $267.6 billion, according to the Central Bank
The UAE’s M1 money supply—which includes currency in circulation and demand deposits—increased by 1.8% to $267.6 billion (AED 982.9 billion) by the end of February, up from $262.8 billion (AED 965.3 billion) the previous month, according to the central bank.
Money Supply
The central bank said the increase in money supply was due to a $1.12 billion (AED 4.1 billion) rise in cash outside banks and a $3.7 billion (AED 13.5 billion) increase in deposits.
The bank also mentioned that the total money supply (including quasi-monetary deposits, M2) grew by 1.8% from January to February, reaching $643 billion (AED 2.36 trillion). Similarly, the total money supply including quasi-monetary deposits and government deposits (M3) increased by 0.8% to $765.9 billion (AED 2.81 trillion) by the end of February.
The Central Bank of the UAE (CBUAE) added that the monetary base grew by 3.1% from January to February, reaching $222.3 billion (AED 816.6 billion). This increase was due to a 3.4% rise in cash issued, a 11.4% rise in bank accounts and overnight deposits at CBUAE, and a 6.2% increase in monetary bills and Islamic certificates of deposit. This growth outweighed a 6.1% decrease in reserve accounts.
Also, the total assets of banks, including banker’s acceptances, rose by 1.6% by the end of February, reaching $1.26 trillion (AED 4.6 trillion). Similarly, loans (gross credit) increased by 0.9%, reaching $600 billion (AED 2.2 trillion) by February’s end due to a rise in both domestic and foreign loans.
Bank deposits grew by 1.2% to $782.6 billion (AED 2.8 trillion) by the end of February. This was driven by a 0.8% increase in deposits from residents and a 5.1% rise in deposits from non-residents.
UAE Economy
The UAE economy grew by 3.9% in 2024, supported by strong performances in both oil and non-oil sectors, according to a report released last month by the CBUAE.
The country’s non-oil exports grew by 13.8% year-on-year, reaching over $762.3 billion (AED 2.8 trillion) last year, mostly because of the Comprehensive Economic Partnership Agreements signed by the UAE.
The central bank expects the UAE’s economy to grow by 4.7% in 2025, reflecting the country’s strong economy and ability to diversify.
Published: 8th May 2025
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