The banking sector in the United Arab Emirates continues its impressive upward trajectory, with total investments reaching AED 763.8 billion by the end of March 2025, according to data released by the Central Bank of the UAE.

This figure marks a 14.9% increase compared to the same period last year, and a 3.9% rise since the beginning of 2025. Month-over-month, bank investments grew by approximately 1%, indicating consistent momentum in financial deployment.

Breaking down the investment portfolio, the bulk of bank investments were channeled into debt securities, which accounted for AED 343.2 billion. Bonds held until maturity followed closely, with banks committing AED 345.3 billion to this category. Equity investments stood at AED 18.7 billion, while other miscellaneous investments totaled AED 56.6 billion.

This rise in investments came alongside a robust expansion in banking credit. Overall bank credit rose to AED 2.24 trillion, reflecting a 9.4% increase year-on-year. Domestic credit reached AED 1.868 trillion, underpinned by strong activity in the private sector, which accounted for AED 1.377 trillion. Credit extended to individuals totaled AED 505.9 billion.

In terms of deposits, UAE banks amassed a total of AED 2.936 trillion. Resident deposits made up the majority with AED 2.687 trillion, while non-resident deposits stood at AED 248.6 billion.

Regionally, bank assets saw notable growth across the Emirates. Banks operating in Abu Dhabi recorded a 4.1% increase in total assets since December 2024, reaching AED 2.26 trillion by March 2025. Dubai’s banking sector grew by 2.8% to AED 2.08 trillion, and other Emirates saw a 4.3% rise to AED 381.7 billion.

Credit allocations followed a similar trend, with Abu Dhabi banks issuing AED 1.05 trillion in credit, a 2.6% increase since the start of the year. Dubai banks provided AED 988.5 billion, also up by 2.6%, while banks in the remaining Emirates contributed AED 197.9 billion in credit, reflecting a 3.9% growth.

Bank deposits mirrored this momentum, reaching AED 1.33 trillion in Abu Dhabi, AED 1.36 trillion in Dubai, and AED 247 billion in other Emirates.

These figures highlight the resilience and dynamism of the UAE’s banking sector, as it continues to capitalize on economic opportunities and diversify its investment portfolio across various financial instruments and regions.