In the first quarter of 2025, the UAE Central Bank recorded a remarkable 19.3% increase in its gold holdings, adding AED 4.444 billion. By the end of March, total gold reserves reached AED 27.425 billion, up from AED 22.981 billion at the close of 2024.

This rise in gold reserves was just one highlight among several positive trends in the banking sector. Demand deposits swelled to over AED 1.147 trillion by the end of March, compared to AED 1.109 trillion at the end of December 2024. Of these, AED 856.062 billion was held in dirhams, while foreign currency-denominated demand deposits stood at AED 291.116 billion.

Similarly, savings deposits showed growth, climbing to AED 338.788 billion at the end of March from AED 317.480 billion in December. This segment comprised AED 268.970 billion in-dirham savings alongside AED 51.817 billion in foreign currencies.

Term deposits also expanded, reaching AED 991.757 billion by March’s end—split between AED 614.854 billion in dirhams and AED 376.903 billion in foreign currency holdings.

Interbank and customer transfers via the UAE Funds Transfer System (UAEFTS) amounted to AED 5.449 trillion in Q1. Of this, banks executed AED 3.331 trillion, while individuals and non-banking entities accounted for AED 2.118 trillion.

Cheque-based transactions remained robust: over the first quarter, some 5.615 million cheques totaling AED 351.359 billion were processed. March alone saw 1.83 million cheques worth AED 116.712 billion.

Cash flows between the Central Bank and financial institutions also reflected strong activity. Withdrawals from the Central Bank during Q1 totaled AED 63.887 billion, with cash deposits amounting to AED 47.124 billion.

Key Takeaways:

• Gold reserve growth: Sharply up 19.3%, indicating strengthened buffer and investment diversification.

• Expansion in deposits: Across demand, savings, and term categories—showing consumer and business confidence.

• Active banking transactions: High volumes in fund transfers and cheque processing demonstrate a vibrant financial system.

• Central Bank liquidity flows: Substantial cash movement underscores ongoing liquidity management efforts.

This data confirms both strategic asset accumulation by the Central Bank and strong banking activity, reflecting the UAE’s growing economic resilience and financial depth.