UAE banking assets hit record AED5.67 trillion as credit, deposits and transfers surge

Abu Dhabi: The UAE banking sector continued its strong growth momentum during July 2026, recording record levels across assets, credit, deposits and domestic liquidity, according to data released by the Central Bank. The figures also showed a significant increase in financial transfers conducted through the banking system, reflecting the continued expansion of economic and financial activity across the country and the growing capacity of banks to finance individuals, businesses and productive sectors. Banking assets reach record high Total assets of banks operating in the UAE rose by 1.3 per cent on a monthly basis, equivalent to approximately AED75.4 billion, reaching a record AED5.669 trillion at the end of July 2026, compared with AED5.594 trillion in June. On an annual basis, banking assets increased by nearly 12.8 per cent, representing growth of more than AED645 billion compared with July 2025. Transfers exceed AED16.9 trillion Data showed that transfers processed through the UAE Funds Transfer System reached approximately AED16.905 trillion during the first seven months of 2026, an increase of 24.5 per cent compared with the same period in 2025. The total included: AED6.451 trillion in customer transfers, up 18.9 per cent AED10.453 trillion in interbank transfers, up 28.2 per cent During July alone, transfer values reached approximately AED2.529 trillion, marking annual growth of 19.8 per cent. The banking system also cleared 1.86 million cheques worth AED115.7 billion during the month, while the cumulative value of cheques processed during the first seven months of the year reached approximately AED780.1 billion. Cash deposits and withdrawals Cash deposits at the Central Bank reached AED147.94 billion since the beginning of 2026, compared with cash withdrawals of AED155.56 billion over the same period. Credit continues to expand Total bank credit increased by AED41.2 billion during July, representing monthly growth of 1.5 per cent, to reach AED2.799 trillion. The increase was driven by: A 1.4 per cent rise in domestic credit to AED2.206 trillion A 1.8 per cent increase in foreign credit to AED592.9 billion The private sector remained the main contributor to domestic credit growth. Outstanding private-sector credit reached AED1.573 trillion, increasing by AED24.8 billion during the month and recording annual growth of 9.9 per cent. Within the private sector: Personal loans increased by AED13.9 billion or 2.3 per cent Corporate lending rose by AED10.9 billion or 1.1 per cent Government lending climbed to AED255.3 billion, reflecting monthly growth of 1.7 per cent and annual growth of 24 per cent. Deposits reach new record Total bank deposits rose by approximately AED37 billion, or 1.1 per cent, during July to reach a record AED3.510 trillion. Resident deposits stood at AED3.198 trillion, while non-resident deposits increased 6.8 per cent in a single month to AED311.4 billion. Private-sector resident deposits reached AED2.344 trillion, up 0.7 per cent. Government-related deposits rose 3.7 per cent to AED347.3 billion, while government sector deposits stood at AED445.4 billion and deposits from other financial institutions reached AED61.3 billion. Liquidity and monetary indicators rise Domestic liquidity indicators continued to expand: M1 increased 0.7 per cent to AED1.047 trillion M2 rose 0.8 per cent to AED2.900 trillion M3 grew 0.4 per cent to AED3.441 trillion The monetary base increased 1.2 per cent to AED792.7 billion, while banks' reserves held with the Central Bank rose 4.7 per cent to AED256.9 billion. Central Bank gold holdings increase The Central Bank's balance sheet showed that the value of gold bullion included in its assets reached AED35.649 billion at the end of July. This represented an increase of approximately AED231 million during the month and growth of around AED6.65 billion, or 22.9 per cent, compared with July 2025.