The sharp increase reflects both rising gold prices and the UAE central bank’s deliberate strategy to diversify its reserves.
The Central Bank of the UAE (CBUAE) has significantly boosted its gold holdings, highlighting a broader global trend among monetary authorities to shift toward safer reserve assets amid rising geopolitical and financial uncertainty.
According to its latest monthly statistical bulletin, the CBUAE’s gold reserves jumped 64.93% in 2025, reaching Dh37.902 billion ($10.32 billion), up from Dh22.981 billion at the end of December 2024.
UAE central bank sharply boosts gold reserves amid global bullion surge
The Central Bank of the UAE (CBUAE) has significantly expanded its gold holdings, reflecting not only rising gold prices but also a deliberate diversification strategy as central banks worldwide continue to accumulate bullion at a record pace.
According to the CBUAE’s latest monthly statistical bulletin, gold reserves surged 64.93% in 2025, reaching Dh37.902 billion ($10.32 billion), up from Dh22.981 billion at the end of 2024. On a monthly basis, reserves rose 1.64% in December 2025, from Dh37.291 billion in November, highlighting sustained accumulation into year-end.
The expansion coincides with robust growth in the UAE banking system. Demand deposits exceeded Dh1.264 trillion by December 2025, up from Dh1.109 trillion a year earlier. Savings deposits climbed to Dh400.51 billion from Dh317.488 billion, while time deposits rose to Dh1.165 trillion from Dh945.78 billion, reflecting strong economic activity and growing confidence in the financial system.
The UAE’s gold accumulation mirrors a broader global trend. According to the World Gold Council, central banks added 863 tonnes of gold to official reserves in 2025, continuing a multi-year buying streak that has reshaped the bullion market. While slightly below the more than 1,000 tonnes purchased annually in the previous three years, the demand underscores gold’s strategic role in reserve management.
Global gold demand reached a record 5,002 tonnes in 2025, with the total market value soaring to $555 billion. Bullion prices delivered a 64% annual gain, their strongest since 1979, driven by falling interest rates, expectations of monetary easing by major central banks, persistent geopolitical tensions, and rising investor demand for safe-haven assets.
Analysts say the UAE’s aggressive gold accumulation is guided by several strategic considerations:
- Hedge against volatility and inflation: Gold provides protection amid diverging global monetary policies and uncertainty over major reserve currencies.
- Diversification of reserves: A higher proportion of gold reduces over-reliance on any single currency or asset class, enhancing resilience.
- Geopolitical neutrality: Unlike sovereign bonds or foreign currencies, gold carries no counterparty risk and is insulated from sanctions or policy shifts, offering financial security for a globally connected economy like the UAE.
The surge in gold prices has also amplified the value of existing reserves, while continued high prices and expectations of further monetary easing globally suggest central banks may maintain their gold-buying momentum through 2026.
The UAE’s move aligns with its broader ambition to strengthen financial stability and reinforce its status as a regional and global financial hub. By expanding gold holdings alongside strong growth in deposits and liquidity, the central bank is building a buffer against external shocks while aligning its reserve strategy with global best practices.
As central banks from emerging markets to advanced economies increasingly see gold as a cornerstone of long-term reserve management, the UAE’s sharp buildup signals both prudence and strategic foresight — and underscores gold’s renewed centrality in the global financial system.
