The first quarter of 2024 saw a surge in credit facilities extended by UAE banks to business and industrial sectors. A whopping AED 15.6 billion was made available by the banks, providing a much-needed shot in the arm for these key industries.
Conventional banks emerged as the primary lenders, contributing a significant AED 694 billion, which translates to 82.5% of the total credit offered. Islamic banks, while playing a vital role, accounted for the remaining 17.5%, providing AED 147.7 billion.
This credit infusion has resulted in a positive development for both sectors. By March 2024, their combined credit balance had grown by a healthy 2.1%, reaching a total of AED 757.4 billion. It’s worth noting that national banks were the major contributors in this regard, extending a substantial AED 841.7 billion in credit.
In essence, this news signifies a positive trend for UAE’s business and industrial sectors. The increased availability of credit from banks is expected to fuel growth and investment within these crucial segments of the economy.
