– Credit facilities from UAE national banks to the business and industrial sectors totaled USD 7 billion (AED 25.7 billion) in the first five months of 2024, marking a 3.5% increase from the end of December 2023.
– The cumulative credit balance for these sectors grew to USD 209 billion (AED 767.2 billion) by the end of May 2024, with a year-on-year increase of 2.9% from USD 203 billion (AED 745.5 billion) in May 2023.
– National banks dominate the credit provision, accounting for 90.1% of the total with USD 232 billion (AED 851.9 billion), while foreign banks contribute 9.9% or USD 23 billion (AED 84.7 billion).
Credit facilities extended by national banks in the UAE to the business and industrial sectors reached USD 7 billion (AED 25.7 billion) in the first five months of 2024, according to recent data from the Central Bank of the United Arab Emirates (CBUAE).
The latest figures reveal a 3.5% increase in the cumulative credit balance for these sectors, rising to USD 209 billion (AED 767.2 billion) by the end of May, up from USD 201 billion (AED 741.8 billion) at the end of December 2023.
Compared to April, the cumulative credit balance saw an increment of USD 1.8 billion (AED 6.8 billion), or 0.9%, from USD 208 billion (AED 760.4 billion). Year-on-year, the balance grew by USD 5.9 billion (AED 21.7 billion), or 2.9%, from USD 203 billion (AED 745.5 billion) in May 2023.
National banks are the primary providers of credit to these sectors, accounting for USD 232 billion (AED 851.9 billion) by the end of May 2024, representing 90.1% of the total credit balance. In contrast, foreign banks contributed a smaller share of 9.9%, amounting to USD 23 billion (AED 84.7 billion).
The distribution of credit among different regions shows that banks in Abu Dhabi issued approximately USD 104 billion (AED 384.8 billion) in May 2024, while banks in Dubai provided around USD 98 billion (AED 362.2 billion). Banks in other emirates lent about USD 28 billion (AED 104.9 billion) to these sectors.
Conventional banks supplied around USD 191 billion (AED 701.7 billion), or 82.4%, of the total credit financing to the trade and industry sectors by the end of May. Meanwhile, Islamic banks contributed approximately USD 41 billion (AED 150.2 billion), representing 17.6%.
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