A bigger banking footprint: UAE assets climb to AED 5.81 trillion

The UAE’s banking sector recorded an 11.8% annual increase in total assets, reaching AED 5.81 trillion ($1.58 trillion) in the third quarter of 2026, as lending activity and deposits continued to expand.

According to figures released by the Central Bank of the UAE, banking assets grew 4% compared to the previous quarter, while total deposits increased 12% year-on-year to AED 3.57 trillion.

The latest figures, reported by the Emirates News Agency (WAM), also showed a rise in lending activity, with total bank credit reaching AED 2.91 trillion, up 17.3% annually and 5.5% from the second quarter.

Deposit growth was supported by both domestic and international customers. Resident deposits increased 2.2% during the quarter to approximately AED 3.25 trillion, while non-resident deposits rose 9.1% to AED 317.9 billion.

Government-related entities accounted for the largest contribution to resident deposit growth, adding 1.4 percentage points, followed by private-sector deposits, which contributed 0.6 percentage points.

The expansion builds on gains recorded earlier in the year. The Central Bank’s September 2026 Quarterly Economic Review showed that banking assets had reached AED 5.6 trillion by the end of June, representing annual growth of 12.5%.

The report also projected UAE economic growth of 10.4% in 2027, compared to 1.6% in 2026, supported by an anticipated expansion in hydrocarbon activity. Non-hydrocarbon economic activity is expected to grow 4.9% next year.

Meanwhile, liquidity in the banking system continued to increase in September. The broad money supply measure M3 rose 1.2% to AED 3.50 trillion, supported by higher deposits in the government sector.

M2, which includes cash, monetary deposits, and quasi-monetary deposits, increased by 0.6% to more than AED 2.93 trillion, while M1 stood at approximately AED 1.02 trillion.

Banks also recorded a 31.3% increase in reserve balances held with the Central Bank, reaching AED 304.7 billion.

Banking transactions remained substantial during the first nine months of 2026, with transfers totaling AED 21.73 trillion. Bank-initiated transactions accounted for AED 13.35 trillion, while customer transfers reached AED 8.38 trillion.

During the same period, more than 16.24 million cheques were processed, with a combined value exceeding AED 990.5 billion.