UAE bank lending jumps as borrowing rises sharply in June

UAE banks witnessed a surge in lending during June, with Dh24.7 billion in additional credit added to the system, nearly double the Dh12.3 billion increase seen in May. Total gross credit rose by 0.9% to Dh2.758 trillion by the end of June, compared to a 0.5% increase in May. The Central Bank of the UAE's report highlights that lending to individuals also grew, increasing by Dh6.8 billion in June, accounting for 0.3 percentage points of domestic credit growth.

UAE banks' investments surged to Dh774.3 billion by the end of April 2025, while foreign lending drove the June increase, rising by Dh19.9 billion, or 3.5%, to Dh582.4 billion. Domestic credit, however, increased by Dh4.8 billion, or 0.2%, to Dh2.175 trillion. Within domestic credit, lending to other financial corporations jumped 11.4%, while credit to government-related entities grew by 1.5%, and government-sector credit rose by 0.6%.

Bank deposits edged higher, with total bank deposits rising by 0.3% to Dh3.473 trillion in June from Dh3.463 trillion in May. Resident deposits increased by 1.2% to Dh3.181 trillion, while non-resident deposits remained at Dh291.5 billion. Private-sector deposits grew by 0.7% to Dh2.327 trillion, and government-sector deposits rose by 2.2% to Dh454.6 billion.

The UAE's broadest measure of money supply, M3, reached Dh3.426 trillion in June, up from Dh3.393 trillion in May. M2 also increased, rising by 0.8% to Dh2.877 trillion.