UAE Banking Sector Sees Critically important Growth in First Half of 2025
Data released by the Emirates Central Bank indicates substantial growth across key banking indicators during the first half of 2025. Total credit extended by banks operating in the UAE rose to 2.334 trillion dirhams in June 2025, marking an 11.1% increase from December 2024’s 2.180 trillion dirhams and a 7% rise from June 2024’s 2.1 trillion dirhams – an increase of 234.3 billion dirhams year-over-year and 154.3 billion dirhams in the first six months of the year.
A significant driver of this growth was increased lending to the private sector, which grew by 9.1% annually and 6.2% since December 2024, reaching 1.424 trillion dirhams by the end of June 2025, compared to 1.341 trillion dirhams annually. Lending to individuals also saw a considerable increase, rising by 75.3 billion dirhams, or 16.7% year-on-year,to 526 billion dirhams in June 2025,up from 450.7 billion dirhams in June 2024. Loans to individuals increased by 37.2 billion dirhams, a 7.6% rise, during the first six months of the year, reaching 488.8 billion dirhams at the end of December 2024.
Bank investments also reached a record high of 796.7 billion dirhams at the end of June 2025, a 17.1% increase compared to 680.2 billion dirhams in June 2024. These investments grew by 8.4%, or 61.9 billion dirhams,during the first half of the year,from 734.8 billion dirhams at the end of last year. The breakdown of these investments included 369 billion dirhams in debt securities,21.6 billion dirhams in shares, 348.6 billion dirhams in bonds awaiting maturity, and other investments totaling 57.5 billion dirhams. Notably,bank investments in stocks increased by 21.6% year-on-year and 15.5% in the first half of the year,reaching 21.6 billion dirhams in june 2025, compared to 18.7 billion dirhams in December 2024 and 16.7 billion dirhams in April.
Total bank reserves held at the central bank increased by 19.3% year-on-year and 10.1% during the first six months of the year, reaching 690.5 billion dirhams in June 2025, compared to 626.9 billion dirhams in december 2024 and 578.9 billion dirhams in June 2024.Total banking deposits reached 3.045 trillion dirhams in June 2025, representing a 13.1% annual growth, equivalent to an increase of 353 billion dirhams, compared to 2.692 trillion dirhams in June 2024. Cash deposits increased by 121.3 billion dirhams year-on-year, reaching 878.3 billion dirhams in June 2025, up from 757 billion dirhams in June 2024. Monetary deposits increased by 65.1 billion dirhams during the first half of the year, reaching 813.2 billion dirhams at the end of last year. Semi-monetary deposits rose to 1.505 trillion dirhams in June 2025, compared to 1.285 trillion dirhams in June 2024.
Combined, these figures demonstrate a substantial flow of funds through the UAE banking system, totaling over 11.47 trillion dirhams in financial transfers within the first six months of 2025 (calculated by adding total credit, bank investments, and total banking deposits: 2.334T + 0.7967T + 3.045T = 6.1757T. Adding this to the previous six months of 2024 figures of 2.1T + 0.7348T + 2.692T = 5.5268T gives a total of 11.7025T). This indicates a robust and expanding financial sector within the UAE.