The UAE banking sector maintained its positive momentum in May 2026, with total banking assets, including bankers’ acceptances, rising by 1.1%.

According to the Monetary and Banking Developments Report for May, issued by the Central Bank of the United Arab Emirates, total banking assets climbed to more than AED 5.633 trillion by the end of the month. That compared with around AED 5.57 trillion at the end of April.

The monthly increase highlights the continued strength of the UAE banking sector, supported by steady growth in domestic lending, deposits, and overall liquidity.

Bank Credit Rises to AED 2.733 Trillion

Total bank credit increased by AED 12.3 billion in May, representing monthly growth of 0.5%, the report showed.

As a result, total credit reached approximately AED 2.733 trillion by the end of the month, up from around AED 2.72 trillion at the end of April 2026.

The increase was mainly driven by a AED 13.8 billion rise in domestic credit. Foreign credit, on the other hand, had a slight negative impact of 0.1 percentage point and remained at AED 562.5 billion.

The main domestic credit sectors all contributed positively to the monthly increase, reflecting continued demand for financing across the UAE economy.

Private Sector Leads Domestic Credit Growth

Lending to the private sector was the main factor behind the rise in domestic credit during May.

Credit extended to companies increased by about AED 4.6 billion, while lending to individuals rose by the same amount.

Corporate and personal credit each contributed around 0.2 percentage point to the overall increase in domestic credit.

Credit provided to government-related entities also grew by AED 3.5 billion, or 1%, adding approximately 0.2 percentage point to domestic credit growth.

The figures show that UAE banks continued to provide financing across several key segments, including companies, individuals, and government-related entities.

Bank Deposits Reach AED 3.463 Trillion

Total bank deposits in the UAE stood at approximately AED 3.463 trillion by the end of May 2026.

The figure reflects continued confidence in the country’s banking system and gives banks a solid funding base to support lending and wider economic activity.

M1 Money Supply Exceeds AED 1 Trillion

Looking at monetary aggregates, the M1 money supply reached around AED 1.054 trillion by the end of May.

Currency in circulation outside banks totaled AED 167.6 billion, while monetary deposits remained steady at AED 885.9 billion.

The M2 money supply also remained stable at approximately AED 2.854 trillion at the end of the month.

Within quasi-monetary deposits, dirham-denominated deposits rose to AED 1.135 trillion, making a positive contribution to the monthly movement in M2.

M3 Money Supply Reaches AED 3.393 Trillion

The M3 money supply increased by 0.4% to reach approximately AED 3.393 trillion by the end of May 2026.

Government sector deposits also rose to AED 539.5 billion, supporting the monthly increase in M3.

Together, these figures point to continued healthy liquidity across the UAE banking system.

Monetary Base Reaches AED 848.5 Billion

The UAE’s monetary base stood at AED 848.5 billion at the end of May.

Bank reserves held with the Central Bank of the UAE recorded a strong increase of 49.4%, reaching AED 295.4 billion.

The rise in reserves strengthens banks’ ability to manage liquidity and meet their obligations, while also supporting the stability of the wider financial system.

AED 11.5 Trillion in Financial Transfers Over Five Months

Banking operations data showed that the cumulative value of domestic financial transfers carried out through the UAE Funds Transfer System reached AED 11.502 trillion by the end of May.

The total covers transfers completed during the first five months of 2026.

Bank transfers accounted for approximately AED 6.903 trillion, while customer transfers totaled about AED 4.6 trillion.

In May alone, domestic transfers reached around AED 2.118 trillion.

Of that amount, approximately AED 1.199 trillion came from bank transfers, while customer transfers stood at about AED 919.1 billion.

The figures reflect the high level of activity across the UAE’s payment and transfer systems, as well as the efficiency of the country’s banking and financial infrastructure.

Central Bank Gold Holdings Near AED 40 Billion

The Central Bank’s monthly statistical bulletin also showed that its gold holdings reached AED 39.937 billion by the end of May 2026.

The figure reflects the strength and diversification of the Central Bank’s assets and supports broader monetary and financial stability.