UAE Central Bank Boosts Gold Reserves by $2 Billion Over 20 Months

The UAE Central Bank has been steadily building up its gold reserves, with holdings more than doubling from 11.9 billion dirhams at the end of 2021 to 30.3 billion dirhams by August 2025. This represents a 154.5% increase over less than four years, signaling the country's strategy to diversify its monetary reserves amid global economic uncertainty.

The numbers show a consistent upward trend. Gold reserves jumped to 16 billion dirhams in 2022, then 18.1 billion in 2023, and 23 billion by the end of 2024. The most recent surge came in the first eight months of 2025, when reserves climbed another 32% to reach 30.3 billion dirhams.

This gold accumulation fits a broader pattern among central banks worldwide. Many are moving away from dollar-heavy reserves and adding precious metals as a hedge against inflation and currency volatility. For the UAE, this strategy makes particular sense given its position as a regional financial hub and its exposure to oil price swings.

The timing is notable too. Gold prices have been on a tear, reaching record highs in recent months. The UAE's buying spree means the central bank has been accumulating the metal even as prices climbed, suggesting confidence in its long-term value.

**Banking sector shows strong growth**

Meanwhile, the UAE's banking sector continues to expand. The country now hosts 61 licensed commercial banks - 23 domestic and 38 foreign institutions - operating through 510 branches nationwide.

Credit growth has been particularly robust. Domestic banks increased lending by 14.9% year-over-year to reach 2.23 trillion dirhams by August 2025. Foreign banks also expanded their loan books, though at a slower 8.9% pace, reaching 182.7 billion dirhams.

Deposits followed a similar pattern. Domestic banks attracted 2.78 trillion dirhams in deposits, up 14.9% from the previous year. Foreign banks saw deposit growth of 8.4%, bringing their total to 344 billion dirhams.

These figures point to a healthy banking environment with strong demand for credit and continued confidence from depositors. The growth rates suggest the UAE economy is expanding at a steady clip, with businesses and consumers comfortable taking on new debt.

For investors and policymakers, the data reveals two key trends: the UAE is building financial resilience through gold reserves while its banking sector supports robust economic activity. Both developments reinforce the country's role as a regional financial center and suggest confidence in its economic trajectory.