"UAE Central Bank's Gold Reserves Surge 26% in Five Months"

The United Arab Emirates' Central Bank has seen a remarkable increase in its gold reserves, rising by over 25.899% within the first five months of the current year. By the end of May, its gold reserves reached an impressive 28.933 billion dirhams, up from approximately 22.981 billion dirhams at the close of December 2024.

In addition to this annual growth, the monthly balance of gold held by the central bank also climbed by 0.49% during May. This was an increase from 28.791 billion dirhams at the end of the preceding April.

The latest statistical bulletin released by the Central Bank highlights a significant growth in demand deposits, which surpassed 1.166 trillion dirhams by the end of May. This is in comparison to about 1.109 trillion dirhams at the end of December 2024.

Demand deposits were split at the end of May, with around 892.577 billion dirhams denominated in the local currency and roughly 274.329 billion dirhams in foreign currencies.

Saving deposits were valued at 359.57 billion dirhams by the end of May, showing an increase from 317.48 billion dirhams at the end of December 2024. Of these saving deposits, approximately 305.508 billion dirhams were in the local currency, while around 54.062 billion dirhams were in foreign currencies.

Time deposits experienced a milestone surpassing the trillion-dirham mark for the first time by the end of May. They were divided between 614.854 billion dirhams in local currency and 398.348 billion dirhams in foreign currencies.

This growth reflects a strong expansion in the financial sector of the UAE, underlining the increasing confidence and stability within its economy. The steady accumulation of gold and the significant rise in both demand and saving deposits suggest a robust banking environment in the nation.

The Central Bank's strategy seems to be paying off, as it manages to enhance its reserve base while also appealing to a diverse range of depositors. This strategy affords the UAE's banking system a strong buffer against potential financial fluctuations, ensuring continued economic resilience.

Moreover, these figures indicate a healthy appetite among UAE's residents and businesses for banking services, and a preference for saving and long-term deposit options, both in local and foreign currencies.

Concurrently, the Central Bank's approach to gold acquisitions demonstrates a forward-thinking outlook. Gold, as a tangible asset, remains a crucial component of national reserve strategies in many countries, valued for its stability and lack of credit risk.

As the UAE Central Bank strengthens its gold reserves and deposits further, this trend reports positively on its economic strategy. The nation is positioning itself as a stable and reliable financial hub in the region, with strategic asset and deposit management actions contributing to sustained economic growth.