UAE bank lending jumps as borrowing rises sharply in June

Dubai: UAE bank lending picked up pace in June, with Dh24.7 billion in additional credit flowing through the banking system — roughly twice the Dh12.3 billion increase recorded in May.

Total gross credit rose 0.9 per cent to Dh2.758 trillion at the end of June, compared with a 0.5 per cent increase in May. The latest figures come from the Central Bank of the UAE’s Monetary & Banking Developments – June 2026 report.

For consumers, the figures show that lending to individuals increased as well. Credit to individuals rose by Dh6.8 billion in June, contributing 0.3 percentage points to the growth in domestic credit.

Foreign lending drives June increase

However, the biggest change came from foreign credit, which rose Dh19.9 billion, or 3.5 per cent, to Dh582.4 billion in June.

Domestic credit, meanwhile, increased by Dh4.8 billion, or 0.2 per cent, to Dh2.175 trillion. In May, domestic credit had been the main driver of overall credit growth, rising by Dh13.8 billion, while foreign credit had a negative impact on growth.

Within domestic credit, lending to other financial corporations jumped 11.4 per cent, while credit to government-related entities increased 1.5 per cent and government-sector credit rose 0.6 per cent.

Bank deposits edge higher

Bank deposits also increased, although at a much slower pace than lending.

Total bank deposits rose 0.3 per cent to Dh3.473 trillion in June, from Dh3.463 trillion in May. Resident deposits rose 1.2 per cent to Dh3.181 trillion, while non-resident deposits stood at Dh291.5 billion.

Private-sector deposits increased 0.7 per cent to Dh2.327 trillion, while government-sector deposits rose 2.2 per cent to Dh454.6 billion. Deposits held by government-related entities climbed 4.1 per cent to Dh355 billion.

Money supply reaches Dh3.43 trillion

The UAE’s broadest measure of money supply, M3, rose from Dh3.393 trillion in May to Dh3.426 trillion in June.

M2 also increased, rising 0.8 per cent to Dh2.877 trillion. Government-related entity deposits rose 4.1 per cent and corporate deposits increased 0.9 per cent during the month.

M1, however, fell from Dh1.054 trillion in May to Dh1.040 trillion in June. Currency circulating outside banks dropped from Dh167.6 billion to Dh160 billion, while monetary deposits fell 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 at the end of May