UAE Banks Boost Business and Industrial Sectors with Over 851 Billion Dirhams in Credit Facilities
In a show of financial strength, UAE banks have provided credit facilities totaling 851.87 billion dirhams ($231.93 billion) to the business and industrial sectors by the end of May. This reflects a significant 3.18 percent year-on-year increase, as reported by the Central Bank of the UAE.
National and Foreign Banks Contribute to the Surge
The latest monthly statistical bulletin from the Central Bank of the UAE reveals that national banks contributed 767.14 billion dirhams, marking a 2.90 percent rise from the previous year. On the other hand, foreign banks increased their credit offerings by 5.79 percent year-on-year, reaching 84.73 billion dirhams.
Supporting the UAE Strategy for the Fourth Industrial Revolution
This surge in credit facilities aligns with the UAE Strategy for the Fourth Industrial Revolution, which aims to enhance the economy through advanced technologies that integrate material, digital, and biological innovations.
Positive Growth Across Various Sectors
According to the CBUAE report, credit facilities extended to the private retail sector reached 441.29 billion dirhams by the end of May, marking a significant 9.41 percent year-on-year increase. National banks contributed 414.47 billion dirhams, with foreign banks adding 26.82 billion dirhams.
In addition, credit facilities provided to the private sector financial institutions by banks totaled 17.07 billion dirhams by the end of May, representing a notable 43.08 percent increase compared to the same period in 2023. National banks contributed 16.21 billion dirhams, while foreign banks offered 862 million dirhams.
Positive Outlook for the Financial Sector
The growth in credit facilities and savings deposits, along with the increase in credit extended to government-related entities and corporate firms in the private sector, indicates a positive outlook for the UAE’s financial sector. This bodes well for its role in supporting various economic activities in the region.