UAE Bank Assets Pass Dh5.81 Trillion in September as Corporate Lending Climbs

The figures show the banking system continuing to expand through a year in which the regional war has disrupted shipping and aviation across the Gulf. Assets stood at Dh5,669.1 billion at the end of July, according to the central bank's report for that month, and in a statement last month the regulator said assets at the end of August were 12.9% higher than a year earlier.

Gross bank credit increased 1.3% in September to more than Dh2.9 trillion. Domestic credit grew faster, rising 1.6% to about Dh2.3 trillion, according to the data.

Lending to companies drove much of that growth, with credit to the corporate sector increasing by about Dh10.8 billion during the month. Credit to the government rose 4.2%, while lending to individuals grew 0.8%.

Deposits rose 0.9% to Dh3.56 trillion at the end of September. Resident deposits increased 0.6%, and non-resident deposits climbed 4.1%. The rise in resident deposits came mainly from a 9.6% increase in public sector deposits and a 7.2% increase in deposits from other financial institutions, the figures showed.

With credit rising faster than deposits during the month, the gap between the two has narrowed slightly. It remains wide, however, with deposits still exceeding gross credit by roughly Dh650 billion, which leaves banks room to keep lending.

The central bank's figures also showed the monetary base at Dh802 billion at the end of September. Banks' reserves held with the central bank grew 31.3% to Dh305 billion, according to the data.

UAE lenders have reported strong earnings this year, helped by high interest rates and continued credit demand. The UAE dirham is pegged to the US dollar, so local rates track the Federal Reserve. After US inflation for October came in above forecasts this week, traders priced in a December rate increase, which would keep borrowing costs elevated into 2027.

The central bank's monthly Monetary and Banking Developments report, which carries the full breakdown by sector and by bank type, is normally published alongside the headline figures.