Strong demand continued Loans And credit in the business sector and individual consumers in the UAE during the last quarter of 2023, according to the results of the credit trends survey for the fourth quarter of 2023 issued by Central Bank of the United Arab Emirates.
The report covers the recent changes related to the financing situation and the demand for loans and credit in the banking sector in the country, and reflects the rapid economic growth in the country and the rise in consumer confidence and operating companies.
Many banks and finance companies operating in the country expressed their readiness to meet the growing demand for loans, despite the tightening of credit standards by some banks.
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Demand for business loans has increased at a strong pace, especially in the construction, manufacturing and trade sectors, while credit cards and real estate market-related borrowing have played a major role in the growth in demand for personal loans.
The impact of interest rates on demand for loans was less severe in the fourth quarter compared to previous periods, especially with the decline in interest rates on loans by the end of 2023.
The vitality of the credit rise highlights the continued demand for investment, in addition to the sustainable recovery of economic activity after the “Covid-19” pandemic, as the results of the questionnaire showed the extension of this positive momentum into the beginning of this year.
Banks and other licensed financial institutions will remain optimistic in their positive outlook on credit and loan demand.
The questionnaire was launched for the first time in 2014 as part of the Central Bank’s efforts to measure the supply and demand factors that affect the local credit market, and to further understand the links between credit trends and the UAE’s economy.
The results for the fourth quarter of 2023 were based on responses received from a committee consisting of 70 licensed financial institutions that provide credit services operating in the UAE, distributed among 58 banks and 12 financing companies.
