UAE banks extended an additional AED28.4bn ($7.7bn) in credit facilities to the business and industrial sectors in the first five months of this year.
According to the latest statistics from the Central Bank of the UAE, the country’s national banks showed that the two sectors witnessed a four per cent rise in credit balance from national banks over five months, rising from around AED717.1bn ($195bn) in December 2022 to AED745.5bn ($203bn) in May 2023.
National banks increased their credit balance for the said sectors by AED8.2bn in May 2023, a monthly increase of 1.11 per cent, which was a year-on-year growth of 3.3 per cent or AED23.9bn, up from AED721.6bn in May 2022.
UAE banks offer business and industry credit
National banks provide the most credit to the sectors, totalling AED825.6bn as of May, or 90.3 per cent of the combined credit balance of the two sectors.
Foreign banks have a much smaller share at 9.7 per cent or AED80.1bn.
The credit balance for the sectors from banks in Abu Dhabi was around AED370.1bn as of the end of May, while banks in Dubai provided AED353.7bn, and those in other emirates lent some AED101.8bn to these sectors.
Out of the credit facilities worth AED825.6bn that these sectors obtained by the end of last May, traditional banks supplied some AED679.8bn, accounting for 82.3 per cent, while Islamic banks provided about AED145.8bn, representing 17.7 per cent of the total.
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