UAE Banks’ Gross Credit Rises 0.5% To $575B In August On Higher Domestic Credit To Private Sector

BY THE ARAB TODAY Dec 05, 2024

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UAE Banks’ Gross Credit Rises 0.5% To $575B In August On Higher Domestic Credit To Private Sector

The UAE banking sector’s total loans increased by 0.5% in August 2024, reaching $575.3 billion (AED 2.11 trillion). This growth was mainly due to more loans given to private businesses within the country, according to official data released on Wednesday.

Private Sector Credit

In August, loans to the private sector grew by 0.8% compared to the previous month, making up for decreases in loans to the public sector (down 0.3%) and non-banking financial institutions (down 3%), according to the Central Bank of the UAE (CBUAE).
Overall, UAE banks increased their domestic loans by 0.5% in August, while loans given abroad went up by 0.8% compared to July.
Deposits in UAE banks saw a small rise of 0.2%, reaching $746.1 billion (AED 2.740 trillion) in August, up from $744.9 billion (AED 2.736 trillion) in July. This growth was mainly due to higher deposits from the government, private sector, and non-banking financial institutions.

Big Number

The total assets of UAE banks, including loans and financial agreements, grew by 0.7% from the previous month to reach $1.2 trillion (AED 4.4 trillion) by the end of August.

Money Supply

The UAE’s narrow money supply (M1), which includes currency in circulation and savings deposits, dropped slightly by 0.1% to $241.8 billion (AED 888 billion) in August, compared to $242.8 billion (AED 889.1 billion) in July. This small decrease was mainly due to a drop of $245 million (AED 900 million) in currency outside the banks and a $108.9 million (AED 400 million) fall in monetary deposits.

The broader M2 money supply, which includes M1 plus other deposits, increased slightly by 0.2% to nearly $602 billion (AED 2.211 trillion) by the end of August, from $600.6 billion (AED 2.206 trillion) the month before.

The total money supply (M3), which includes M2 plus government deposits with UAE banks and the central bank, grew by 0.8% to $734.1 billion (AED 2.696 trillion) due to an increase in government deposits.