Overview:
The UAE banking sector ended the first half of 2026 with total assets of 5.593 trillion dirhams, while credit expansion slowed to 2.757 trillion dirhams with 0.9 percent growth and deposits reached 3.472 trillion dirhams with just 0.3 percent growth. Regional real estate development accelerated, with 186 new property firms registered in Dubai by mid-August, averaging 25 companies monthly. Gold prices retreated globally and in Egypt, with the 21-carat standard declining 135 Egyptian pounds on Friday, August 14.
Details:
Banking sector growth remained modest in the first half of 2026 despite an expanding economic base. Total credit outstanding increased marginally to 2.757 trillion dirhams, reflecting cautious lending sentiment, while customer deposits grew only fractionally to 3.472 trillion dirhams. This flat deposit growth suggests depositors may be diversifying holdings or reducing liquidity amid uncertain market conditions.
Dubai's real estate sector demonstrated robust developer confidence with 186 new property development companies registered through mid-August 2026, supported by 180 licenses issued by Dubai's Department of Economy and Tourism. This expansion reinforces the emirate's position as a regional and global real estate destination, with approximately 25 new entrants per month broadening the competitive landscape and increasing project absorption capacity.
Precious metals markets weakened substantially during the week. Gold prices fell on Friday, August 14, with the 21-carat standard in Egypt declining 135 Egyptian pounds as global bullion retreated amid profit-taking after prices had reached two-month highs in the prior session. Aluminum prices continued their decline into a second consecutive day following announcements by Emirates Global Aluminum regarding accelerated production recovery plans to pre-war output levels.
Outlook:
Investors are monitoring whether UAE credit growth will accelerate in the second half of 2026 or remain constrained by tighter lending conditions. Real estate developers and commercial property investors are tracking Dubai's expanding developer base to assess competitive intensity and project delivery timelines across residential and mixed-use segments.