UAE banking assets climb 1.1% in May to AED 5.633 trillion, Central Bank reports
UAE banking assets rose 1.1% in May to AED 5.633 trillion, Central Bank says; domestic credit led growth while deposits, reserves and transfers climbed.
The value of UAE banking assets increased in May as the Central Bank’s monthly monetary and banking report showed a modest rise driven by domestic lending and strengthened liquidity positions. Total assets including acceptances reached AED 5.633 trillion at the end of May 2026, up from AED 5.57 trillion at the end of April. The Central Bank highlighted a concurrent rise in total bank credit and a sharp increase in banks’ reserves held at the central bank.
Central Bank: Total assets and credit overview
The Central Bank’s May 2026 report indicated total bank assets, inclusive of acceptances, rose by 1.1% month-on-month to AED 5.633 trillion. This followed a level of AED 5.57 trillion at end-April and reflects a steady expansion in the banking sector’s balance sheets.
Total bank credit expanded by AED 12.3 billion in May, an increase of 0.5%, taking the stock to about AED 2.733 trillion. The report noted that the uptick in lending was concentrated in domestic credit, while foreign credit exerted a slight negative effect on overall credit dynamics.
Domestic credit fuels the increase
Domestic credit rose by AED 13.8 billion in May and was the dominant contributor to the month’s lending growth. The Central Bank attributed the improvement to broad-based activity across major domestic sectors, signalling sustained demand for financing within the UAE economy.
By contrast, lending to non-residents and foreign credit components slightly reduced the net change, contributing a marginal negative 0.1 percentage point to the month’s overall credit movement. Nonetheless, the net effect remained positive due to the stronger domestic component.
Private sector lending and household finance
The private sector emerged as a primary driver of the credit expansion, with both corporate and individual lending increasing in May. Credit extended to companies rose by approximately AED 4.6 billion, while loans to individuals rose by a similar AED 4.6 billion amount, each contributing roughly 0.2 percentage points to domestic credit growth.
This pattern suggests continued activity in business investment and consumer borrowing, supporting economic transactions across multiple industries. Analysts view the balanced rise between corporate and household lending as indicative of diversified credit demand rather than concentration in a single borrower category.
Government-related entities also increase borrowing
Lending to entities linked to the government also registered gains in May, rising by AED 3.5 billion, or about 1% for that segment. That increase contributed around 0.2 percentage points to the growth of domestic credit, underscoring the role of public-sector-related financing in overall credit dynamics.
The Central Bank’s breakdown shows that while private sector lending was the main driver, government-associated financing continued to play a meaningful supporting role in the credit expansion for the month.
Deposits, reserves and the monetary base
Bank deposits stood at AED 3.463 trillion at the end of May, reflecting a robust deposit base that underpins lending capacity. The report also recorded the monetary base at AED 848.5 billion for May, a key indicator of base money in the economy.
A notable development was the sharp rise in banks’ reserve balances held at the Central Bank, which climbed 49.4% to reach AED 295.4 billion. The increase in reserves points to stronger liquidity buffers within the banking system and a higher level of central-bank-held balances than in the prior month.
Domestic payments and transfer system activity
The Central Bank’s data on payment flows showed strong usage of the national funds transfer system in the first five months of 2026. Cumulative local transfers executed through the system reached AED 11.502 trillion by end-May, with banks accounting for roughly AED 6.903 trillion and customers making about AED 4.6 trillion of transfers.
During May alone, transactional volumes totalled around AED 2.118 trillion, split between AED 1.199 trillion processed by banks and AED 919.1 billion transacted by customers. These figures reflect high payment-system activity and underline the continued importance of electronic transfers in supporting commerce and financial flows across the UAE.
Central Bank gold holdings valuation
The Central Bank’s monthly statistics also reported the value of its gold reserves, which stood at AED 39.937 billion at the end of May. The announced valuation provides a snapshot of the central bank’s non-cash reserve composition and contributes to the overall assessment of official reserve assets.
Gold holdings are typically revalued in line with market prices and are one component of the Central Bank’s broader reserve framework that supports financial stability and external confidence.
Looking ahead, the Central Bank’s May report suggests a banking system that is expanding its asset base while maintaining strong liquidity and payment-system activity. Continued monitoring of credit distribution, deposit trends and reserve levels will be important for assessing the durability of lending momentum and the resilience of the UAE’s financial sector.