UAE Central Bank Sees Historic Growth in Gold Reserves, Surpassing Dhs30 Billion
By [Author Name]
In a noteworthy development for the financial landscape of the United Arab Emirates, the Central Bank of the UAE (CBUAE) has reported a substantial increase in its gold reserves, which have surged by approximately 32% during the first eight months of 2025. This marks a significant milestone as the bank’s gold reserves have exceeded Dhs30 billion for the very first time, illustrating a robust trend in the nation’s financial security and investment strategy.
By the close of August 2025, the total value of gold reserves reached an impressive Dhs30.329 billion—a considerable escalation from Dhs22.981 billion recorded at the end of December 2024. The monthly data showcases an upward trajectory, with gold holdings witnessing a growth of more than 4.5% in August alone, rising from Dhs28.997 billion at the end of July. This positive trend not only reflects the Central Bank’s efforts to fortify its asset base but also denotes a strategic alignment with global investment patterns where gold often serves as a strategic hedge against economic volatility.
A panoramic view of the CBUAE headquarters in Abu Dhabi underscores the bank’s pivotal role in shaping the UAE’s financial ecosystem. The physical manifestation of this growth trend can be aptly captured through the building’s modern architecture, representing a robust financial future.
The implications of this increased gold reserve are multifaceted. At a macroeconomic level, they bolster the country’s financial stability amid rising uncertainties in global markets. As numerous nations grapple with inflationary pressures and currency fluctuations, the UAE’s choice to stockpile gold can be seen as not just a safeguard for the national economy but a calculated investment strategy that may enhance investor confidence and attractiveness to foreign direct investments.
In conjunction with the growth of gold reserves, other key financial indicators reported by the CBUAE contribute to a holistic understanding of the UAE’s banking sector. As per the statistical bulletin published by the bank, the value of demand deposits rose to over Dhs1.188 trillion by the end of August, an increase from Dhs1.109 trillion at the end of December 2024. This healthy rise in demand deposits—a reflection of consumer confidence—highlights the buoyancy of the banking sector in the nation’s financial fabric.
As of the end of August, the demand deposits included Dhs892.273 billion in local currency and Dhs296.137 billion in foreign currencies. Meanwhile, savings deposits displayed a commendable increase, totaling Dhs376.479 billion, an uptick from Dhs317.48 billion at the close of last year. This figure comprised Dhs321.761 billion in local currency alongside Dhs54.718 billion in foreign currencies, indicating a growing preference among citizens and residents to save in a mix of currencies.
Adding to these positive indicators, time deposits also surpassed Dhs1.05 trillion by the end of August, with Dhs664.669 billion held in local currency and AED386.19 billion in foreign currencies. Such figures reflect a considerable level of liquidity within the financial system, supporting continuous economic growth and stability.
In summary, the CBUAE’s strategic emphasis on increasing gold reserves, coupled with robust performances in demand and savings deposits, underscores the UAE’s resilience and forward-thinking approach in navigating global economic challenges. The Central Bank’s proactive measures serve not only to reinforce national financial standing but also to instill confidence among investors and stakeholders alike.
As the UAE continues to enhance its fiscal portfolio through diversified assets, including precious metals like gold, the nation solidifies its position as a stable and attractive hub for global investment. The growth of the CBUAE’s gold reserves encapsulates a broader trend of financial prudence and acumen that is likely to define the region’s economic narrative for years to come.
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