UAE bank lending accelerates in June as credit to individuals rises by Dh6.8bn.
Dubai: UAE bank lending accelerated in June, with an additional Dh24.7 billion in credit flowing through the banking system, roughly double the Dh12.3 billion increase recorded in May.
Total gross credit increased 0.9 per cent to Dh2.758 trillion by the end of June, accelerating from a 0.5 per cent rise in May, according to the Central Bank of the UAE’s Monetary & Banking Developments – June 2026 report.
Lending to individuals also recorded growth, with credit to consumers rising by Dh6.8 billion in June and contributing 0.3 percentage points to the increase in domestic credit.
Foreign lending drives June increase
Foreign credit was the biggest contributor to the increase, rising by Dh19.9 billion, or 3.5 per cent, to Dh582.4 billion in June.
Domestic credit, meanwhile, grew by Dh4.8 billion, or 0.2 per cent, to Dh2.175 trillion. This marked a shift from May, when domestic credit was the main driver of overall lending growth, increasing by Dh13.8 billion while foreign credit weighed on the total.
Within domestic lending, credit to other financial corporations rose 11.4 per cent, while lending to government-related entities increased 1.5 per cent and credit to the government sector grew 0.6 per cent.
Bank deposits edge higher
Bank deposits also increased in June, although at a much slower pace than lending.
Total deposits rose 0.3 per cent to Dh3.473 trillion from Dh3.463 trillion in May. Resident deposits increased 1.2 per cent to Dh3.181 trillion, while non-resident deposits stood at Dh291.5 billion.
Private-sector deposits rose 0.7 per cent to Dh2.327 trillion, while government-sector deposits increased 2.2 per cent to Dh454.6 billion. Deposits held by government-related entities also climbed 4.1 per cent to Dh355 billion.
Money supply rises to Dh3.43 trillion
The UAE’s broadest measure of money supply, M3, increased from Dh3.393 trillion in May to Dh3.426 trillion in June.
M2 also grew 0.8 per cent to Dh2.877 trillion, supported by a 4.1 per cent rise in government-related entity deposits and a 0.9 per cent increase in corporate deposits during the month.
M1, however, declined from Dh1.054 trillion in May to Dh1.040 trillion in June. Currency in circulation outside banks fell from Dh167.6 billion to Dh160 billion, while monetary deposits decreased from Dh885.9 billion to Dh880 billion.
Gross bank assets stood at Dh5.594 trillion at the end of June, down from Dh5.633 trillion a month earlier.
