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The Central Bank issued the “Monetary and Banking Developments – May 2026” report, which showed that money supply aggregate M1 amounted to Dhs1,053.5 billion at the end of May 2026. Currency in circulation outside banks settled at Dhs167.6 billion, while Monetary Deposits stood at Dhs885.9 billion.
The report also showed that the money supply aggregate M2 settled at Dhs 2,853.9 billion at the end of the month. Within Quasi-Money, dirham deposits increased to Dhs1,135.4 billion, providing a positive contribution to the monthly movement in M2.
Furthermore, the money supply aggregate M3 stood at Dhs3,393.4 billion at the end of May 2026. Government sector deposits grew to Dhs539.5 billion, providing a positive contribution to monthly movement in M3.
In addition, the monetary base stood at Dhs848.5 billion, at the end of May 2026. Over the month, Reserve Balances of Banks with the CBUAE recorded a notable increase of 49.4%, rising to Dhs295.4 billion.
Gross banks’ assets improved by 1.1% from Dhs5,570.1 billion at the end of April 2026 to Dhs5,633.1 billion at the end of May 2026.
In addition, gross credit increased by Dhs12.3 billion (0.5%), from Dhs 2,720.7 billion at the end of April 2026 to Dhs2,733.1 billion at the end of May 2026.
The increase in gross credit was driven by an Dhs13.8 billion rise in Domestic credit, while Foreign credit had negative influence, by 0.1 p.p., settling at Dhs562.5 billion.
Within Domestic credit, all sectors contributed positively to its growth.
The main driver was higher lending to the Private sector, notably due to an increase of Dhs4.6 billion in credit equally to both Corporate and Individuals, which each contributed 0.2 p.p to overall Domestic credit growth. In addition, credit to GREs increased by Dhs3.5 billion (1.0%), contributing 0.2 p.p to domestic credit growth.
Furthermore, banks’ deposits stood at Dhs3,463.4 billion at the end of May 2026 .
Over the month, non-resident deposits increased by 3.6% reaching Dhs318.6 billion. Within resident deposits, positive contributions came from increases in Other Financial Corporations (OFCs) deposits, which improved by 2.4%, reaching Dhs67.2 billion, and contributing to the overall change by 0.1 p.p.
WAm
