Credit growth led by private sector lending

Gross bank credit rose by AED25.2 billion, or 0.9%, to AED2.721 trillion in April. The increase was driven mainly by domestic credit, which expanded by AED18.5 billion.

Lending to the private sector, particularly individuals, increased by AED6.2 billion, largely supported by housing finance and personal consumer loans. Credit to government-related entities also rose by AED7.7 billion, while lending to the government and corporate sectors recorded further growth.

Deposits continue to increase

Bank deposits rose by 0.7% to AED3.469 trillion at the end of April, compared with AED3.446 trillion a month earlier.

Growth was entirely driven by resident deposits, which rose to AED3.162 trillion. Private-sector deposits made the strongest contribution, increasing by 1.4% to AED2.31 trillion, while government deposits climbed by 4.6% to AED446.8 billion.

Deposits held by government-related entities and other financial corporations, however, fell during the month.

Monetary aggregates remain stable

The report showed that M1 fell by 0.8% to AED1.064 trillion, reflecting lower deposits and currency in circulation outside banks.

Meanwhile, M2 remained broadly stable at AED2.87 trillion, while M3 stood at AED3.407 trillion by the end of April.

The monetary base fell by 1.6% to AED865.8 billion, mainly due to lower reserve requirements and a reduction in monetary bills and Islamic certificates of deposit.

Fund transfers and gold reserves increase

Domestic fund transfers processed through the UAE Funds Transfer System totalled AED9.384 trillion in the first four months of 2026, comprising AED5.7 trillion processed by banks and AED3.68 trillion by customers.

In April alone, transfers totalled AED2.723 trillion.

Separately, the Central Bank’s gold holdings increased by about 2% in April, rising to AED40.816 billion from AED40 billion at the end of March.