emirates7 - The Central Bank announced a decrease in money supply aggregate M1 by 2.5%, from AED1,099.8 billion at the end of February 2026 to AED1,072.7 billion at the end of March 2026.
The decrease was caused by a decrease in monetary deposits by 4.0%. Meanwhile, currency in circulation outside banks rose by 6.9%.
The money supply aggregate M2 increased by 0.4% in March 2026, rising from AED2,856.8 billion at the end of February 2026 to AED2,869.3 billion at the end of March 2026. This growth was mainly driven by a AED39.6 billion increase in Quasi-Monetary Deposits. Government Related Entities (GREs) deposits made the largest contribution, which grew by 16.3%.
However, the Corporate sector deposits decreased by 1.7%, Individuals’ deposits by 2.8% and also Other Financial Corporations (OFC) deposits by 1.3%.
The positive contribution of the GREs to M2 was neutralised by the downward contribution of the private sector.
The money supply aggregate M3 increased by 1.6%, rising from AED3,353.7 billion at the end of February 2026 to AED3,406.8 billion at the end of March 2026.
Government sector deposits recorded a monthly increase of 8.2%, reaching AED537.5 billion, and contributed positively to M3 growth by 1.3 p.p.
The monetary base decreased by 4.3%, from AED918.6 billion at the end of February 2026 to AED879.5 billion at the end of March 2026. The decrease was caused by the decline in Reserve Requirements by 21.9% and Monetary Bills & Islamic Certificates of Deposit by 4.6%.
However, Banks & OFCs Current Accounts & Overnight Deposits of Banks increased by 32.7% and currency issued by 8.9%, which moderated the decline of overall aggregate.
Gross banks’ assets increased by 1.5% from AED5,472.5 billion at the end of February 2026 to AED5,556.5 billion at the end of March 2026.
Gross credit increased by 2.5%, rising from AED2,630.7 billion at the end of February 2026 to AED2,695.6 billion at the end of March 2026. This overall growth was primarily supported by an AED52.4 billion increase in domestic credit.
The main driver was credit to the Government sector, which rose by 6.9%, contributing 0.8 p.p. to overall domestic credit growth. It was followed by an increase in GREs by 6.0%, adding 0.9 p.p. and a positive contribution from credit to the private sector by 1.1%, which contributed 0.8 p.p.
Banks’ deposits increased by 1.4%, from AED3,399.9 billion at the end of February 2026 to AED3,446.0 billion at the end of March 2026.
The increase in banks’ deposits was driven mostly by the growth in resident deposits, which increased by 1.3% reaching AED3,138.8 billion (contributing 1.2 p.p.), while non-resident deposits increased by 1.8% reaching AED307.2 billion.
Within the resident deposits, the biggest contribution (1.6 p.p.) came from GREs, recording an increase by 16.3% reaching AED363.1 billion. Government sector deposits also increased by 9.0% reaching AED427.3 billion.
At the same time, private sector deposits decreased by 1.9% settling at AED2,278.2 billion, and OFC deposits by 2.5 percent settling at AED70.2 billion at the end of March 2026.
The decrease was caused by a decrease in monetary deposits by 4.0%. Meanwhile, currency in circulation outside banks rose by 6.9%.
The money supply aggregate M2 increased by 0.4% in March 2026, rising from AED2,856.8 billion at the end of February 2026 to AED2,869.3 billion at the end of March 2026. This growth was mainly driven by a AED39.6 billion increase in Quasi-Monetary Deposits. Government Related Entities (GREs) deposits made the largest contribution, which grew by 16.3%.
However, the Corporate sector deposits decreased by 1.7%, Individuals’ deposits by 2.8% and also Other Financial Corporations (OFC) deposits by 1.3%.
The positive contribution of the GREs to M2 was neutralised by the downward contribution of the private sector.
The money supply aggregate M3 increased by 1.6%, rising from AED3,353.7 billion at the end of February 2026 to AED3,406.8 billion at the end of March 2026.
Government sector deposits recorded a monthly increase of 8.2%, reaching AED537.5 billion, and contributed positively to M3 growth by 1.3 p.p.
The monetary base decreased by 4.3%, from AED918.6 billion at the end of February 2026 to AED879.5 billion at the end of March 2026. The decrease was caused by the decline in Reserve Requirements by 21.9% and Monetary Bills & Islamic Certificates of Deposit by 4.6%.
However, Banks & OFCs Current Accounts & Overnight Deposits of Banks increased by 32.7% and currency issued by 8.9%, which moderated the decline of overall aggregate.
Gross banks’ assets increased by 1.5% from AED5,472.5 billion at the end of February 2026 to AED5,556.5 billion at the end of March 2026.
Gross credit increased by 2.5%, rising from AED2,630.7 billion at the end of February 2026 to AED2,695.6 billion at the end of March 2026. This overall growth was primarily supported by an AED52.4 billion increase in domestic credit.
The main driver was credit to the Government sector, which rose by 6.9%, contributing 0.8 p.p. to overall domestic credit growth. It was followed by an increase in GREs by 6.0%, adding 0.9 p.p. and a positive contribution from credit to the private sector by 1.1%, which contributed 0.8 p.p.
Banks’ deposits increased by 1.4%, from AED3,399.9 billion at the end of February 2026 to AED3,446.0 billion at the end of March 2026.
The increase in banks’ deposits was driven mostly by the growth in resident deposits, which increased by 1.3% reaching AED3,138.8 billion (contributing 1.2 p.p.), while non-resident deposits increased by 1.8% reaching AED307.2 billion.
Within the resident deposits, the biggest contribution (1.6 p.p.) came from GREs, recording an increase by 16.3% reaching AED363.1 billion. Government sector deposits also increased by 9.0% reaching AED427.3 billion.
At the same time, private sector deposits decreased by 1.9% settling at AED2,278.2 billion, and OFC deposits by 2.5 percent settling at AED70.2 billion at the end of March 2026.
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