Abu dhabi: Gross banks' assets in the region saw an increase of 1.1%, reaching AED5,633.1 billion by the end of May 2026, as reported in the Central Bank's 'Monetary and Banking Developments - May 2026'. This report highlighted significant monetary and banking trends over the month.

According to Emirates News Agency, the money supply aggregate M1 was recorded at AED1,053.5 billion at the end of May 2026. This includes currency in circulation outside banks at AED167.6 billion and Monetary Deposits at AED885.9 billion. The money supply aggregate M2 settled at AED2,853.9 billion, with dirham deposits within Quasi-Money increasing to AED1,135.4 billion, contributing positively to M2's monthly movement.

Additionally, the money supply aggregate M3 stood at AED3,393.4 billion, with government sector deposits increasing to AED539.5 billion. This growth had a favorable impact on the monthly movement of M3. The monetary base at the end of May 2026 was AED848.5 billion, while Reserve Balances of Banks with the CBUAE noted a 49.4% increase, rising to AED295.4 billion.

Gross credit also rose by AED12.3 billion, moving from AED2,720.7 billion at the end of April 2026 to AED2,733.1 billion at the end of May 2026. This was primarily due to an AED13.8 billion increase in Domestic credit, despite a slight negative impact from Foreign credit, which settled at AED562.5 billion.

The growth in Domestic credit was driven by an increase in lending to the Private sector, with a noticeable AED4.6 billion rise in credit to both Corporate and Individual sectors. Credit to Government-Related Entities (GREs) also saw an increase of AED3.5 billion, contributing to domestic credit growth.

Lastly, banks' deposits reached AED3,463.4 billion by the end of May 2026. Non-resident deposits increased by 3.6%, reaching AED318.6 billion, while resident deposits saw positive contributions from Other Financial Corporations (OFCs) deposits, which grew by 2.4% to AED67.2 billion.