Now Reading: UAE’s gold reserves surge nearly 26% in 2025 amid robust banking sector growth | World News
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UAE’s gold reserves surge nearly 26% in 2025 amid robust banking sector growth | World News
UAE’s gold reserves surge nearly 26% in 2025 amid robust banking sector growth | World News
The UAE’s gold holdings have risen sharply in 2025, alongside broad-based growth in deposits and banking belongings, signaling resilient monetary momentum. The Central Bank’s newest knowledge displays sustained power in native and overseas foreign money positions, at the same time as international gold costs dip barely amid cautious US financial coverage indicators.
UAE gold reserves see sharp improve in 2025
As of the tip of May 2025, the UAE Central Bank’s gold reserves stood at 28.93 billion dirhams ($7.9 billion) — marking a 25.9% improve in simply 5 months.On a month-to-month foundation, reserves grew as nicely, rising from 28.65 billion dirhams in April to twenty-eight.79 billion dirhams in May, reflecting a 0.49% uptick.This upward development in gold holdings underscores continued efforts by the regulator to diversify its reserve belongings and hedge in opposition to international monetary volatility.
Deposit base expands throughout the board
The Central Bank’s bulletin additionally confirmed important will increase throughout demand, financial savings, and time depositsDemand Deposits
- Total demand deposits exceeded 1.16 trillion dirhams by May-end, up from 1.10 trillion dirhams on the shut of 2024.
- Of this quantity:
- 892.57 billion dirhams have been held in native foreign money
- 274.33 billion dirhams have been in foreign currency
Savings Deposits
- Grew to 359.57 billion dirhams by May 2025, up from 317.48 billion dirhams in December 2024
- Breakdown:
- 305.51 billion dirhams in native foreign money
- 54.06 billion dirhams in foreign currency
Time Deposits
- Surpassed the 1 trillion dirham threshold for the primary time by May-end
- Composition:
- 614.85 billion dirhams in native foreign money
- 398.35 billion dirhams in foreign currency
The sharp growth throughout all deposit varieties indicators robust confidence in the home banking system, supported by wholesome liquidity ranges and deposit diversification.
Banking sector belongings and regional tendencies
The UAE’s banking sector continued to broaden steadily. As of April 2025, whole banking belongings — together with bankers’ acceptances — rose by 0.6%, reaching 4.75 trillion dirhams.This growth was supported by two key drivers:
- A sustained demand for credit score
- A marked improve in non-resident deposits
Across the Gulf area, banking tendencies assorted:
- Kuwait recorded a 6.7% year-on-year rise in whole banking belongings, reaching 93.5 billion Kuwaiti dinars ($303 billion) in March
- Saudi Arabia noticed a 7.4% improve, with banking belongings climbing to SR5.3 trillion ($1.41 trillion) in April
- Qatar registered a slight 0.1% month-to-month decline, with whole banking belongings falling to 2.07 trillion riyals ($559 billion), largely as a consequence of weaker home holdings
Global gold costs dip as fed holds charges regular
While the UAE’s gold reserves grew, international gold costs skilled a modest decline amid indicators from the US Federal Reserve.
- As of 11:02 a.m. Saudi time on Thursday, spot gold slipped by 0.2%, priced at $3,340.09 per ounce
- US gold futures for December supply additionally fell 0.2%, all the way down to $3,382.30
The dip adopted the discharge of minutes from the Fed’s July assembly, which revealed broad consensus on sustaining rates of interest at present ranges. Only a minority of policymakers favored a price minimize.Though the Fed has held charges regular since December 2024, investor sentiment leans towards an 81% chance of a quarter-point minimize by September, primarily based on CME’s FedWatch Tool.Markets are actually waiting for Fed Chair Jerome Powell’s speech on the Jackson Hole symposium (Aug. 21–23), the place he might make clear the Fed’s stance — balancing between supporting labor markets and controlling inflation.
