By Desmond Nleya
DUBAI- The UAE banking sector maintained its growth momentum in April 2026, with total banking assets rising to AED5.57 trillion, according to the latest Monetary and Banking Developments Report released by the Central Bank of the UAE.
Total assets increased by 0.2 percent from AED5.556 trillion recorded at the end of March, reflecting the continued strength and stability of the country’s financial sector.
Gross bank credit expanded by AED25.2 billion, or 0.9 percent, to reach AED2.721 trillion. The growth was largely driven by an AED18.5 billion increase in domestic credit, with lending to individuals accounting for a significant share of the rise. Housing loans and personal consumer financing were the main contributors, resulting in individual credit increasing by AED6.2 billion during the month.
Credit extended to government-related entities also recorded strong growth, rising by AED7.7 billion, or 2.3 percent. Meanwhile, lending to both government institutions and the corporate sector made smaller but positive contributions to overall domestic credit expansion.
Bank deposits also continued to grow, increasing by 0.7 percent to AED3.469 trillion. The rise was entirely supported by resident deposits, which climbed to AED3.162 trillion. Private sector deposits led the increase, growing by 1.4 percent to AED2.31 trillion, while government sector deposits surged by 4.6 percent to AED446.8 billion.
However, deposits from government-related entities and other financial corporations declined by 6.6 percent each, partially offsetting the gains recorded elsewhere in the banking system.
The report showed mixed trends in monetary aggregates. M1 money supply fell by 0.8 percent to AED1.064 trillion, while M2 and M3 remained largely stable at AED2.87 trillion and AED3.407 trillion respectively. The monetary base contracted by 1.6 percent to AED865.8 billion, mainly due to a sharp 26.3 percent drop in reserve requirements.
Meanwhile, domestic fund transfers processed through the UAE Funds Transfer System reached AED9.384 trillion during the first four months of 2026. April alone accounted for AED2.723 trillion in transactions, highlighting the high level of economic activity across the country.
The Central Bank’s gold reserves also strengthened during the month, rising by nearly 2 percent to AED40.816 billion.
The latest figures underscore the resilience of the UAE banking sector, supported by steady credit growth, rising deposits, and robust financial activity across the economy.
Source: Emirates News Agency
