The money supply aggregate M2 increased due to a AED22.4 billion growth in Quasi-Monetary Deposits. The money supply aggregate M3 also increased by 1.4 percent, from AED3,079.5 billion at the end of August 2025 to AED3,123.3 billion at the end of September 2025. The increase was due to a rise in currency in circulation outside banks by 1.0 percent and in monetary deposits by 0.3 percent. The money supply aggregate M2 increased by 1.0 percent, from AED2,562.9 billion at the end of August 2025 to AED2,589.3 billion at the end of September 2025. The growth in domestic credit was due to increases in credit to the government sector by 0.4 percent, public sector (government-related entities) by 7.2 percent, private sector by 1.5 percent, and non-banking financial institutions by 9.1 percent. Banks’ deposits grew by 1.8 percent, from AED3,128.5 billion at the end of August 2025 to AED3,186.0 billion at the end of September 2025. Gross banks’ assets increased by 2.2 percent from AED5,087.0 billion at the end of August 2025 to AED5,199.9 billion at the end of September 2025, according to the Central Bank of the UAE (CBUAE). In its Monetary & Banking Developments– September 2025, the CBUAE announced an increase in the money supply aggregate M1 by 0.4 percent, from AED1,028.7 billion at the end of August 2025 to AED1,032.7 billion at the end of September 2025. The increase in banks’ deposits was driven by growth in resident deposits by 0.7 percent, reaching AED2,891.4 billion, and in non-resident deposits by 14.5 percent, at AED294.6 billion. Within resident deposits, government sector deposits decreased by 0.5 percent, and government-related entities deposits decreased by 0.1 percent. M3 increased due to the rise in M2, amplified by a AED17.4 billion increase in government deposits. The monetary base decreased by 2.5 percent, from AED854.1 billion at the end of August 2025 to AED832.5 billion at the end of September 2025. The decline in the monetary base was driven by a decrease in the reserve account by 8.9 percent, surpassing the increase in currency issued by 0.9 percent, as well as a decrease in banks & OFCs current accounts & overnight deposits of banks at CBUAE by 2.4 percent, and monetary bills & Islamic certificates of deposit by 0.9 percent. Gross credit increased by 2.5 percent from AED2,417.3 billion at the end of August 2025 to AED2,478.8 billion at the end of September 2025. While private sector deposits increased by 0.7 percent, and non-banking financial institutions deposits grew by 13.8 percent, at the end of September 2025. Gross credit increased due to the combined growth in domestic credit by AED43.9 billion and foreign credit by AED17.6 billion.
