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UAE bank lending is growing faster than deposits in 2026. Gross credit rose AED 301.1 billion from January to August, while deposits rose AED 227.8 billion, Central Bank of the UAE data shows. On the arithmetic of FOUAE (Founders of UAE), banks added about AED 1.32 of lending for every AED 1 of new deposits.

Data: Central Bank of the UAE (CBUAE), bank results for the nine months to September 2026, Fitch, S&P and bank analysts, March to October 2026. FOUAE calculations are marked. This is an explainer, not investment advice.

In short

  • Gross credit grew 11.7 percent in the first eight months of 2026, against 6.9 percent for deposits.
  • Banks are paying more for deposits and borrowing more abroad to close the gap.
  • Capital and funding buffers remained above regulatory minimums at the latest readings.

How fast is UAE bank lending growing?

UAE bank lending is growing quickly. Gross credit reached AED 2,871.4 billion at the end of August 2026, the CBUAE’s August report shows. That is 18.8 percent more than a year earlier, on FOUAE’s comparison with the CBUAE’s August 2025 figure.

However, deposits grew more slowly. They reached AED 3,534.8 billion, about 13 percent more than a year earlier.

Jon Peace, head of Mena equity research at UBS, called UAE credit growth “super strong and resilient and clearly ahead of other Gulf countries”, AGBI reported in September.

The FOUAE calculation

From the end of 2025 to the end of August 2026, gross credit rose AED 301.1 billion, or 11.7 percent. Over the same months, deposits rose AED 227.8 billion, or 6.9 percent.

Dividing the first by the second gives AED 1.32 of new lending for every AED 1 of new deposits. As a result, the ratio of gross credit to deposits rose from about 77.7 percent to 81.2 percent. Both totals include business with non-residents, so the ratio is internally consistent. Still, it is a rough measure rather than the CBUAE’s regulatory test.

Which banks are lending faster than they raise deposits?

The pattern of UAE bank lending differs by bank. These FOUAE calculations use balances at the end of September 2026.

  • Abu Dhabi Commercial Bank (ADCB) added AED 66 billion of net loans against AED 58 billion of deposits this year, or about AED 1.14 of loans per AED 1 of deposits, Gulf News reported.
  • Sharjah Islamic Bank grew financing by AED 8.5 billion and deposits by AED 4.7 billion, about AED 1.81 per AED 1. Its financing-to-deposits ratio rose to 89.7 percent from 81.8 percent, Zawya reported.
  • Emirates Islamic grew deposits by about AED 13.7 billion, slightly more than financing growth of about AED 12.8 billion. Chief executive Farid AlMulla said its ratio of 87.7 percent “remained comfortably within management’s target range”.

Emirates NBD is harder to compare. Its balance sheet now includes RBL Bank, the Indian lender in which it took a 60 percent stake through a share issue completed on 18 June. Excluding RBL, its loans grew 18 percent this year and deposits 12 percent, Gulf News reported.

Why credit demand is running ahead of deposits

Several forces push UAE bank lending in the same direction. Individuals and companies are borrowing more, and large projects need funding. For example, HSBC estimates the UAE’s project-finance pipeline needs more than US$190 billion of funding, The National reported in October. That theme also runs through our look at the UAE FDI target.

Meanwhile, deposits have grown more slowly and shifted in form. Time deposits rose almost 10 percent this year to AED 1.28 trillion, while demand deposits fell 1.8 percent, AGBI reported. Our analysis of UAE bank margins shows what that does to bank earnings.

How UAE banks are paying for the gap

Banks are closing the gap in three ways.

Higher deposit rates. First, the CBUAE raised its base rate by 25 basis points to 3.90 percent, effective 17 September 2026. Some banks have gone further for new money. First Abu Dhabi Bank (FAB) pays individual customers a campaign rate of 5.60 percent on new iSave funds from 1 September to 31 December 2026. Its standard rates run up to about 3.25 percent, depending on balance, according to its product page. Emirates NBD has advertised up to 5.5 percent on some larger new deposits, Bloomberg reported, as cited by EnterpriseAM.

More borrowing abroad. Second, UAE banks’ US-dollar debt issuance rose 43 percent from a year earlier in the first nine months of 2026, Fitch said, Reuters reported. Their share of GCC bank issuance rose to 32 percent from 17 percent.

Drawing on liquid assets. Third, Jefferies estimates banks’ liquid assets have fallen to 11 percent of total assets from 13 percent. “This is one of the indicators of tighter liquidity in the domestic banking system,” said Naresh Bilandani, managing director at Jefferies, AGBI reported.

Is the UAE bank lending gap a risk?

On the regulator’s own measures, however, banks still had room at the latest readings. The CBUAE caps banks’ advances-to-stable-resources ratio at 100 percent. Its published sector indicator, the lending to stable resources ratio, stood at 73.9 percent for conventional banks and 79.2 percent for Islamic banks in February 2026, before most of this year’s credit growth. Capital adequacy, including buffers, was 17.0 percent in June, against a 13 percent minimum.

That said, the cushion is narrowing. On 17 March, the CBUAE approved a resilience package of liquidity facilities and temporary relief on liquidity and stable funding ratios. Edmond Christou of Bloomberg Intelligence said the liquidity support expired in September, EnterpriseAM reported. Jefferies also expects the sector’s loan-to-deposit ratio to reach 83 percent in 2026, from 79 percent in 2025, on its own definition.

What UAE bank lending means for founders

FOUAE’s reading, not a forecast: when UAE bank lending outpaces deposits, banks compete for funds, so cash held by businesses becomes more valuable to them. Founders with surplus cash are therefore in a stronger position to ask what their bank pays on it.

On the other hand, banks funding new loans with costlier deposits have less room to cut loan rates. Hiring recovered in the third quarter, as our look at the UAE job market shows, one sign that demand for credit has not faded.

The verdict on UAE bank lending

UAE bank lending is outpacing deposits by about AED 1.32 to AED 1. Banks are closing the gap with higher deposit rates, more borrowing abroad and their own liquid assets. Regulatory ratios sat well inside the limits at the latest published reading, and the next CBUAE monthly report will show whether deposit growth starts to catch up.

Frequently Asked Questions

How fast is UAE bank lending growing in 2026?

Gross credit in the UAE reached AED 2,871.4 billion at the end of August 2026, CBUAE data shows. On FOUAE’s comparison with August 2025, that is 18.8 percent higher. Deposits grew about 13 percent over the same period, to AED 3,534.8 billion.

Why are UAE banks paying higher interest on savings?

Lending is growing faster than deposits, so banks compete for new funds. The CBUAE raised its base rate to 3.90 percent in September 2026. FAB also offers individual customers a campaign rate of 5.60 percent on new iSave funds until 31 December 2026.

Are UAE banks at risk from fast lending growth?

Regulatory buffers remained wide at the latest readings. The CBUAE caps advances to stable resources at 100 percent, and its sector lending to stable resources ratio stood at 73.9 and 79.2 percent in February 2026.

Sources

Sources: CBUAE, Monetary and Banking Developments, August 2026 and August 2025; CBUAE, Q4 2025 and Q2 2026 developments reports; CBUAE, banking indicators, February 2026; CBUAE, base rate decision, 16 September 2026; CBUAE, resilience package, 17 March 2026; Gulf News, Emirates NBD and ADCB results, 21 and 22 October 2026; Emirates Islamic, Q3 2026 results; Zawya, Sharjah Islamic Bank results, 13 October 2026; Dubai Media Office, Emirates NBD and RBL Bank, 18 June 2026; FAB, iSave terms, accessed 24 October 2026; AGBI, UAE bank credit growth and deposit growth analyses, September 2026; The National, 20 October 2026; EnterpriseAM, 13 October 2026; Reuters, citing Fitch, 6 October 2026. Lending-per-deposit ratios and the year-on-year changes are FOUAE calculations.

Founders of UAE (FOUAE) is an independent, digital-first business publication covering the founders, companies and economy of the United Arab Emirates. Follow FOUAE on Instagram and LinkedIn.