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UAE central bank boosts reserves as global gold rush accelerates
The dramatic rise reflects not only higher gold prices but also a deliberate diversification strategy by the UAE's monetary authority
- PUBLISHED: Thu 12 Feb 2026, 9:33 AM
The Central Bank of the UAE (CBUAE) has sharply increased its gold holdings, underscoring a strategic shift among monetary authorities worldwide towards safer reserve assets amid heightened geopolitical and financial uncertainty.
The CBUAE announced that its gold reserves surged 64.93 per cent in 2025 to Dh37.902 billion ($10.32 billion), compared with Dh22.981 billion at the end of December 2024, according to its latest monthly statistical bulletin.
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The dramatic rise reflects not only higher gold prices but also a deliberate diversification strategy by the UAE's monetary authority as global central banks continue to accumulate bullion at a record pace.
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On a monthly basis, the UAE’s gold reserves rose 1.64 per cent in December 2025 from Dh37.291 billion in November, highlighting sustained accumulation into year-end.
The expansion comes as the UAE's banking system liquidity and deposit base also recorded strong growth, with demand deposits exceeding Dh1.264 trillion by December 2025, up from Dh1.109 trillion a year earlier.
Savings deposits climbed to Dh400.51 billion from Dh317.488 billion, while time deposits crossed Dh1.165 trillion from Dh945.78 billion over the same period — reflecting robust economic activity and rising confidence in the country’s financial system.
The sharp increase in the UAE's gold reserves mirrors a broader global trend. Central banks worldwide added 863 tonnes of gold to their official reserves in 2025, according to the World Gold Council, extending a multi-year buying streak that has reshaped the global bullion market.
Although slightly below the more than 1,000 tonnes purchased annually in the preceding three years, the continued strong demand underscores the structural importance of gold in reserve management strategies.
Global gold demand reached an all-time high of 5,002 tonnes in 2025, while the total market value of annual gold demand surged to a record $555 billion.
The rally in bullion prices was equally dramatic, with gold delivering a 64 per cent annual gain — its strongest performance since 1979 — driven by falling interest rates, expectations of monetary easing by major central banks including the Federal Reserve, persistent geopolitical tensions and rising investor demand for safe-haven assets.
Analysts say the UAE’s aggressive accumulation of gold is rooted in several strategic considerations.
First, gold serves as a reliable hedge against currency volatility and inflation, particularly at a time when global monetary policies are diverging and the long-term outlook for major reserve currencies remains uncertain.
Second, holding a higher proportion of gold enhances the resilience and diversification of foreign exchange reserves, reducing over-reliance on any single currency or asset class.
The ongoing geopolitical landscape — marked by conflicts, trade tensions and shifting global alliances — has also reinforced gold's appeal as a politically neutral reserve asset. Unlike sovereign bonds or foreign currencies, gold carries no counterparty risk and remains insulated from sanctions or policy shifts in any single country. For a globally connected economy such as the UAE, this provides an additional layer of financial security.
Moreover, the sustained surge in gold prices has boosted the valuation of existing reserves, amplifying the impact of fresh purchases. With bullion continuing to trade near historic highs and market expectations pointing to further monetary easing globally, many central banks are expected to maintain their gold-buying momentum through 2026.
The UAE's move also reflects its broader ambition to strengthen financial stability and reinforce its status as a regional and global financial hub. By expanding its gold holdings alongside robust growth in banking deposits and liquidity, the central bank is effectively building a stronger buffer against external shocks while aligning its reserve strategy with global best practices.
As central banks from emerging markets to advanced economies increasingly view gold as a cornerstone of long-term reserve management, the UAE’s sharp buildup in bullion holdings signals both prudence and strategic foresight — and highlights how the yellow metal is once again at the centre of the global financial system.
