Credit facilities extended by UAE national banks to the business and industrial sectors reached AED 25.7 billion in the first five months of 2024, according to the Central Bank of the UAE (CBUAE).
This led to a 3.5% increase in the cumulative credit balance for these sectors, rising from AED 741.8 billion at the end of December 2023 to AED 767.2 billion by the end of May 2024.
The credit balance grew by AED 6.8 billion, or 0.9%, from April to May 2024, and saw a year-on-year increase of 2.9% (AED 21.7 billion) compared to May 2023. National banks accounted for the majority of the credit, providing AED 851.9 billion (90.1% of the total), while foreign banks contributed AED 84.7 billion (9.9%).
In terms of regional distribution, Abu Dhabi banks provided AED 384.8 billion, Dubai banks AED 362.2 billion, and banks in other emirates AED 104.9 billion. Conventional banks were responsible for AED 701.7 billion (82.4%) of the credit, with Islamic banks contributing AED 150.2 billion (17.6%).
Overall, the robust credit provision underscores the strong support from UAE banks to the business and industrial sectors, facilitating growth and stability in the economy.
News Source: Emirates News Agency
