According to the latest statistics from the Central Bank of the UAE, the country’s national banks increased their credit facilities for the business and industrial sectors by around AED28.4 billion in the first five months of this year.
The statistics also showed that the two sectors witnessed a 4 percent rise in credit balance from national banks over five months, rising from around AED717.1 billion in December 2022 to AED745.5 billion in May 2023.
National banks increased their credit balance for the said sectors by AED8.2 billion in May 2023, a monthly increase of 1.11 percent, which was a year-on-year growth of 3.3 percent or AED23.9 billion, up from AED721.6 billion in May 2022.
National banks provide the most credit to the sectors, totalling AED825.6 billion as of May, or 90.3% of the combined credit balance of the two sectors.
Foreign banks have a much smaller share at 9.7 percent or AED80.1 billion.
The credit balance for the sectors from banks in Abu Dhabi was around AED370.1 billion as of the end of May, while banks in Dubai provided AED353.7 billion, and those in other emirates lent some AED101.8 billion to these sectors.
Out of the credit facilities worth AED825.6 billion that these sectors obtained by the end of last May, traditional banks supplied some AED679.8 billion, accounting for 82.3 percent, while Islamic banks provided about AED145.8 billion, representing 17.7 percent of the total.
News Source: Emirates News Agency