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RIYADH: Gold reserves held by the Central Bank of the UAE increased by 25.9 percent during the first five months of 2025 to reach 28.93 billion dirhams ($7.9 billion).

The regulator’s statistical bulletin revealed that the UAE’s gold holdings also edged up on a monthly basis, recording a 0.49 percent rise in May to 28.79 billion dirhams, compared to 28.65 billion dirhams at the end of April, Emirates News Agency reported.

In addition to stronger gold reserves, the bulletin showed that demand deposits grew significantly, surpassing 1.16 trillion dirhams by the end of May. This was an increase from 1.10 trillion dirhams at the end of 2024.

Of the total, 892.57 billion dirhams were held in local currency, while 274.33 billion dirhams were in foreign currencies.

Savings deposits also registered a sharp increase, climbing to 359.57 billion dirhams by the end of May from 317.48 billion dirhams in December. Local currency savings accounted for 305.51 billion dirhams, while the figure for foreign currency stood at 54.06 billion dirhams.

Furthermore, time deposits surpassed the 1 trillion dirham mark for the first time by the end of May. Of this figure, 614.85 billion dirhams were denominated in local currency, while 398.35 billion dirhams were in foreign currencies.

The UAE’s banking sector continued its steady expansion, with total assets, including bankers’ acceptances, rising 0.6 percent in April to 4.75 trillion dirhams.

The increase was driven by resilient credit demand and a surge in non-resident deposits, Emirates News Agency reported.

Across the Gulf, banking performance was mixed. Kuwait posted a 6.7 percent year-on-year rise in assets to 93.5 billion dinars ($303 billion) in March, while �������� saw a 7.4 percent jump to SR5.3 trillion ($1.41 trillion) in April. 

Qatar, however, recorded a marginal 0.1 percent monthly decline in total assets to 2.07 trillion riyals ($559 billion), reflecting weaker domestic holdings.

Global prices

Gold prices edged lower on Thursday after the US Federal Reserve’s July meeting minutes showed a majority consensus on holding interest rates steady.

Spot gold was down 0.2 percent at $3,340.09 per ounce, as of 11:02 a.m. Saudi time. US gold futures for December delivery also lost 0.2 percent to $3,382.30.

Minutes from the Fed’s July meeting showed the policymakers who dissented against last month’s decision to keep interest rates unchanged were alone in advocating for a rate cut.

Non-yielding gold typically performs well in a low interest rate environment.

The Fed has held rates steady since December, although investors still expect an 81 percent chance of a quarter-point cut by September, according to the CME’s FedWatch tool.

Fed Chair Jerome Powell is expected to speak on Friday at the Aug. 21-23 Jackson Hole symposium, with investors watching whether he backs measures to bolster the labor market or focuses on curbing inflation.

RIYADH: Kuwait’s inflation inched higher in July as rising food and beverage costs pushed the annual rate to 2.39 percent, up from 2.32 percent in June, data from the Central Statistical Bureau showed. 

The food and beverages group, a key component of the index, climbed 0.63 percent month on month, while miscellaneous goods and services rose 0.43 percent and clothing and footwear gained 0.27 percent. 

The latest data follows signs of economic recovery, with real gross domestic product expanding 1 percent year on year in the first quarter of 2025, ending seven consecutive quarters of contraction, according to the National Bank of Kuwait. The rebound has been supported by steady improvements in the non-oil sector. 

In its latest report, the Central Statistical Bureau stated: “The Consumer Price Index (CPI) increased by 0.22 percent at 137.2 as a result of the increase in prices of some major groups in the movement of the indices.” 

It added: “Prices of recreation and cultural group increased by 0.15 percent because of an increase in prices of audio-visual, photographic and information and tools and other recreational equipment, gardens and pets.” 

Prices of furnishings and household maintenance edged up 0.14 percent, reflecting cost increases in home textiles, glassware, and household utensils. By contrast, the transportation group dipped 0.07 percent, weighed by lower operating costs for personal vehicles. 

Housing, health, communication, education, and restaurants and hotels categories remained flat during the period. 

In March, Fitch Ratings reaffirmed Kuwait’s AA- long-term foreign currency rating with a stable outlook, citing its strong fiscal position and external balance sheet.

The US-based agency noted that the country’s external balance sheet remains the strongest among all Fitch-rated sovereigns, with net foreign assets projected to rise to 601 percent of GDP in 2025, up from an estimated 582 percent in 2024. 

This comes as Kuwait’s non-oil business activity continues to grow. The latest Purchasing Managers’ Index, released earlier this month by S&P Global, showed the PMI rising to 53.5 in July from 53.1 in June, signaling a solid monthly improvement in the non-oil private sector. 

S&P Global noted that inflationary pressures eased in July, with purchase prices and staff costs rising at their slowest pace in six and four months, respectively.

The survey also showed that Kuwaiti companies remain strongly optimistic about future growth, expecting output to rise further in the remaining months of the year.