The Central Bank of the United Arab Emirates (CBUAE) has reported a strong increase in its gold reserves during the first five months of 2025. According to the latest statistics published in the Central Bank’s official bulletin, the gold holdings of the UAE grew by an impressive 25.899%, reaching AED 28.933 billion at the end of May. This is a significant rise from AED 22.981 billion recorded at the end of December 2024.

This increase reflects the UAE’s strategy to strengthen its financial position and diversify its reserve assets. The move also demonstrates the country’s confidence in gold as a stable and valuable asset in uncertain global economic times.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel 

Month-on-Month Growth of Gold

The Central Bank’s statistics showed that the gold reserves also increased slightly on a month-to-month basis. By the end of May, the reserves rose by 0.49% compared to April. At the end of April, the total gold reserves were AED 28.791 billion. This steady growth indicates careful planning by the Central Bank to manage its gold assets efficiently.

Demand Deposits Show Healthy Growth

In addition to gold reserves, the CBUAE’s demand deposits have also shown growth. Demand deposits are bank balances that people and businesses can withdraw at any time. By the end of May 2025, demand deposits exceeded AED 1.166 trillion, compared to AED 1.109 trillion at the end of December 2024.

Breaking this down, AED 892.577 billion of the deposits were in local currency, while AED 274.329 billion were in foreign currencies. This increase highlights the growing confidence of the public and businesses in the UAE banking system. More money in demand deposits also reflects strong economic activity, as people keep their money ready for spending or investments.

Savings Deposits Also Rising

The Central Bank’s data revealed that savings deposits also increased during the first five months of 2025. Savings deposits are money kept in banks where people earn interest while saving for the future. By the end of May, savings deposits reached AED 359.57 billion, up from AED 317.48 billion at the end of December 2024.

Within this total, AED 305.508 billion were held in local currency, and AED 54.062 billion in foreign currencies. The steady rise in savings deposits shows that citizens and businesses are actively saving more money, which is important for financial security and stability.

Time Deposits Cross AED 1 Trillion

One of the most notable highlights in the CBUAE’s statistics is the record set by time deposits. Time deposits are bank deposits that are kept for a fixed period, earning a higher interest rate. For the first time, time deposits exceeded AED 1 trillion by the end of May 2025.

Out of this, AED 614.854 billion were in local currency, and AED 398.348 billion were in foreign currencies. This milestone shows that individuals and companies in the UAE are trusting banks for long-term savings and investments. Time deposits play an important role in the economy, as they allow banks to invest money for growth and provide loans to businesses and individuals.

Understanding the Importance of These Figures

The increase in gold reserves, demand deposits, savings deposits, and time deposits shows that the UAE’s economy is in a strong position. Gold reserves are an important part of a country’s wealth because gold holds value over time and is a safe investment during economic uncertainty.

At the same time, growing bank deposits indicate confidence in the financial system. More demand and savings deposits mean that people are saving and keeping their money in banks rather than outside. Time deposits crossing AED 1 trillion reflect the willingness of people to save long-term and earn interest, which strengthens the banking system and the economy.

How This Impacts the UAE Economy

These financial indicators have several positive effects on the UAE economy:

1. Economic Stability: Rising gold reserves provide a buffer against global economic fluctuations and strengthen the UAE’s financial security.

2. Banking Confidence: Increasing deposits show that people trust banks, which is essential for economic growth and investment.

3. Investment Opportunities: Time deposits give banks the ability to lend more to businesses, which helps create jobs and expand the economy.

4. Currency Strength: A strong reserve position and high deposits in local currency help maintain the stability of the UAE dirham.

CBUAE’s Strategic Role

The Central Bank of the UAE is responsible for maintaining financial stability, regulating banks, and managing national reserves, including gold. By increasing gold holdings and encouraging deposits, the CBUAE ensures that the country remains economically secure and prepared for future challenges.

The Central Bank’s careful planning also reflects its goal to maintain a balance between domestic financial growth and international economic trends. These measures demonstrate that the UAE is focused on long-term stability, protecting its citizens’ wealth, and supporting sustainable growth.

Future Outlook

Experts predict that if this trend continues, the UAE’s financial strength will keep growing. Gold reserves might rise further as global gold prices remain attractive, and deposits may continue to increase as the economy grows. The growing time deposits show that investors and citizens are confident in the country’s future, which is a positive sign for everyone in the UAE.

The Central Bank will continue monitoring these trends to ensure that the country’s economy remains strong, the banking sector remains robust, and citizens’ savings are protected. These efforts are essential for maintaining the UAE’s position as a major financial hub in the region.

The Central Bank of the UAE has shown remarkable progress in 2025 by increasing its gold reserves, growing demand and savings deposits, and achieving record time deposits exceeding AED 1 trillion. This demonstrates strong confidence in the banking system, economic stability, and effective financial management. The UAE continues to set an example for careful planning, financial security, and long-term growth in the region.

The rise in gold reserves and bank deposits is not just a number; it represents the strength, trust, and resilience of the UAE’s economy. Citizens, businesses, and the government all play a role in this positive financial outlook, helping ensure prosperity for the country now and in the future.