The UAE's national banks have significantly increased their credit facilities to the private sector, with an additional AED49.5 billion provided in the first five months of 2024.
This increase has raised the cumulative total of private sector lending to AED1.182 trillion by the end of May, marking a 4.5% growth from AED1.132 trillion at the end of December 2023, according to the Central Bank of the UAE (CBUAE).
On a monthly basis, national banks' financing to the private sector grew by 1.22%, or AED14.3 billion. Annually, this reflects a 5.3% increase, or AED59.7 billion. The statistics also reveal that national banks account for approximately 91.4% of the total credit provided to the private sector, which totals AED1.29 trillion as of May 2024.
Foreign banks contributed AED111.5 billion in financing to the private sector, showing a modest month-on-month increase of 0.18% and an annual growth of 4.3%. Over the first five months of 2024, foreign banks' lending to the private sector grew by 3.24%, adding AED3.5 billion.
The strong growth in credit facilities highlights the robust support from UAE banks to the private sector, reinforcing their critical role in the country’s economic development.
News Source: Emirates News Agency
