Banks in the Emirates extended a total of AED40.42 billion in loans to the private sector in the country during the first seven months of the current year, indicating an increase of 4.2 per cent.
The value of gross credit facilities hit a record of AED1 trillion by the end of June and July, the highest ever, according to UAE central bank’s data published by Al Bayan.
Banking sources said that loans, advances and overdrafts extended to private sector banks and finance companies in the UAE have been noticeably growing during the past two years and this year.
Banks operating in the country stepped up their lending services to the private sector in recent months, following a period of steady decline from 2009 to 2012.
The sources attributed the record rise in loans granted to the resident private sector to several factors, most notably, a lucrative investment climate, low investment risk, higher deposits and liquidity with local banks.
They added that some banks slashed interest rates in a bid to account for a larger share of the local lending market, especially in light of the risks that these banks may face in investments abroad.
Introducing an essential new addition to MEA Market’s roster of awards, the inaugural Middle East CEO of the Year Awards 2023!
Visit our awards hereMEA Markets is proud to announce the return of the MEA Business Awards 2023, which stands as a testament to the remarkable achievements of businesses spanning the Middle East and Africa region! This prestigious awards programme returns for its seventh year and aims to recognize and laud outstanding performers across a spectrum of industries, encompassing finance, technology, energy, healthcare, and more. Through this platform, excellence, innovation, and exemplary leadership are brought to the forefront.
Visit our awards hereMEA Markets is excited to announce that we are set to host the UAE Business Awards for an eighth consecutive year! The 2024 programme will look to recognise the top performing companies across the various key sectors that make up the UAE’s diverse and evolving industry market.
Visit our awards hereWe have packages to suit everyone. Let us help work out which one would suit your needs!