UAE Bank Credit Demand Surges Despite Rising Interest Rates

The Central Bank of the UAE (CBUAE) stated that demand for bank credit in the country is growing, supported by economic stability and strong investments, despite rising interest rates.

According to the Credit Sentiment Survey of the CBUAE for Q2 2024, the positive economic outlook and improving asset quality continue to support the willingness of financial institutions to lend.

The survey results indicate that the strong demand for credit is likely to continue until the third quarter of this year, the CBUAE said, noting that the construction sector recorded the highest growth rate in credit demand during the second quarter of this year, followed by manufacturing, real estate development, and retail and wholesale trade.

The second quarter of the year saw continued strong demand for trade credit and increased lending appetite. Demand was strong across all loan categories and industry sectors, with strong demand from large government entities and large corporates.

The survey explained that all the emirates witnessed a strong increase in credit demand during the second quarter of this year and expected credit demand to remain strong across all economic sectors in the coming three months, especially in the construction, real estate, manufacturing, retail and wholesale sectors.

News Source: Emirates News Agency