Abu Dhabi, UAE – Monetary and banking indicators in the UAE continued their positive performance during the month of February.
Total banking assets rose 1.1% to exceed AED 5.472 trillion, compared to about AED 5.414 trillion at the end of January.
Total credit rose 1.2% from AED 2.598 trillion at the end of January to exceed AED 2.63 trillion at the end of February. Supported by an increase in domestic credit of AED 20.6 billion.
This growth is mainly due to a 1.3% increase in credit to the private sector, contributing about 0.8 percentage points to total growth. In addition to a positive contribution from credit to government-linked entities of 1.1% and about 0.2 percentage points. While this growth was limited by the decline in credit granted to the government sector by 1.1% for the second month in a row, recording a negative contribution of about 0.1 percentage points.
bank deposits
Regarding deposits, total bank deposits increased by 1.9%, reaching AED 3.4 trillion at the end of February 2026, compared to approximately AED 3.337 trillion at the end of January. Supported by a 1.7% growth in resident deposits to reach AED 3.098 trillion.
Non-resident deposits also increased by 3.8% to reach 301.8 billion dirhams. While resident deposit data showed growth in most of its components. Private sector deposits increased by 2.2% to reach 2.322 trillion dirhams, contributing the largest share of growth by about 1.6 percentage points.
Deposits from government-linked entities and other financial institutions contributed positively and symmetrically, at about 0.2 percentage points each. With increases of 1.8% and 10.3%, respectively, while government sector deposits decreased by 2.3% to settle at AED 392 billion at the end of February.
monetary base
On the monetary base, it rose by 2% to 918.6 billion dirhams at the end of February, compared to 900.8 billion dirhams at the end of January. Driven by a 33.6% increase in current accounts of banks and other financial institutions and overnight deposits. In addition to an increase in the reserve account by 1.1% and the issued cash by 0.6%. While the growth was limited by a 4.3% decline in cash authorizations and Islamic certificates of deposit.
Regarding cash flow, the N1 cash supply increased by 1.7% to reach approximately AED 1.1 trillion at the end of February, compared to AED 1.081 trillion at the end of January. As a result of an increase in cash in circulation outside banks by 1.4% and cash deposits by 1.8%.
The supply of N2 cash also increased by 2.4% to reach about 2.857 trillion dirhams, supported by an increase in quasi-cash deposits of 48.5 billion dirhams. The corporate sector contributed the largest share of growth, at 1 percentage point, with its deposits increasing by 2.1%, followed by individuals, with a contribution rate of 0.8 percentage points, with their deposits growing by 5.3%.
Deposits from government-linked entities grew by 1.8%, contributing about 0.2 percentage points of total growth, supported by higher demand and savings deposits in UAE dirhams. Deposits from other financial companies also contributed positively, rising by 13%, driven mainly by an increase in foreign currency deposits.
Likewise, the N3 cash supply rose 1.6% to reach about 3.354 trillion dirhams at the end of February 2026, despite a decline in government sector deposits by 2.9% to reach 496.9 billion dirhams. It recorded a negative contribution of about 0.4 percentage points, but this decline was offset by growth in the rest of the other components of deposits, which supported the overall increase in the money supply.
One trillion dirham barrier
According to data issued today, the Central Bank’s foreign assets exceeded 1.095 trillion dirhams at the end of February, compared to 1.084 trillion dirhams at the end of the previous January.
As of the end of February, the Central Bank’s foreign assets were distributed at a rate of 270.5 billion dirhams in bank balances and deposits with banks abroad. And 762.6 billion dirhams in foreign securities, and about 62.6 billion dirhams in other assets.
The Central Bank’s budget exceeded 1.13 trillion dirhams at the end of February. It was distributed in the liabilities and capital category at a rate of 555.5 billion dirhams in current and deposit accounts. 292.9 billion dirhams in cash authorizations and Islamic certificates of deposit, and 178.5 billion dirhams in banknotes and coins issued. Other liabilities amounted to AED 19.9 billion, while capital and reserves amounted to AED 83.7 billion.
As for the balance sheet – asset class, it was distributed at a rate of 220.4 billion dirhams in cash and bank balances. 64.9 in deposits, 789.3 in investments, and 55.9 in other assets.
