UAE central bank surpasses $8.2 billion in gold reserves for first time, up 32 percent from December 2024
Wed Oct 08 2025
The Central Bank of the United Arab Emirates (CBUAE) has recently marked a significant milestone by surpassing AED30 billion ($8.2 billion) in gold reserves for the first time in its history. This achievement, reached during the first eight months of 2025, highlights the UAE’s growing emphasis on enhancing its financial stability and economic resilience amid global uncertainties. By the end of August 2025, the value of gold reserves held by the CBUAE reached an unprecedented AED30.329 billion, demonstrating a robust increase of approximately 32 percent compared to AED22.981 billion at the close of December 2024.
Gold holdings rose over 4.5 percent in August
This substantial growth in gold reserves represents more than just numerical expansion; it reflects the strategic foresight of the UAE’s central bank to diversify its reserve assets and strengthen the country’s financial foundations. The steady month-on-month increase in gold holdings, exemplified by a more than 4.5 percent growth in August alone—from AED28.997 billion at the end of July to AED30.329 billion by the end of August—illustrates a continued commitment to accumulating a valuable hedge asset in uncertain economic times.
Alongside gold reserves, the CBUAE’s overall banking deposits also demonstrate strong upward trends as of August 2025. Demand deposits, a critical liquidity indicator reflecting funds readily available in the banking system, rose to over AED1.188 trillion compared to AED1.109 trillion in December 2024. This total consisted of AED892.273 billion denominated in the local currency (dirham) and AED296.137 billion in various foreign currencies, underscoring a healthy and diversified deposit base.
Savings deposits, traditionally regarded as a measure of household and corporate financial stability, also posted marked increases. By the end of August, savings deposits reached AED376.479 billion, climbing from AED317.48 billion at the end of the previous year. Of these deposits, AED321.761 billion were held in local currency with the remaining AED54.718 billion in foreign currencies. This rise reflects growing confidence among savers and investors in the UAE’s banking sector.
Similarly, time deposits—funds deposited for fixed terms—exceeded AED1.05 trillion by the end of August 2025. These consisted of AED664.669 billion held in dirhams and AED386.19 billion in foreign currencies, highlighting continued investor confidence in the UAE’s financial system and its ability to safeguard long-term savings. The increasing volume of time deposits signals robust liquidity conditions and an appetite for secure, interest-earning financial instruments.
The CBUAE’s decision to incrementally build its gold reserves aligns with a broader global trend where central banks diversify away from traditional reserve assets like the US dollar to include more tangible, stable assets such as gold. In an era marked by geopolitical tensions, inflationary pressures, and volatile currency markets, gold provides a reliable hedge that enhances monetary stability and economic security. The UAE’s gold accumulation strategy not only fortifies its reserve portfolio but also reflects the nation’s dynamic economic vision and preparedness for evolving global financial scenarios.
Banking sector expansion in the UAE, driven by growing demand deposits, savings, and time deposits, supplements the strengthening of gold reserves. These combined factors underscore a resilient financial ecosystem that supports national development goals and investor trust. The Central Bank’s statistical bulletin, which reports these figures, highlights the UAE’s continued efforts to maintain a robust and diversified economic framework in the face of uncertain global economic currents.
Source: https://economymiddleeast.com/