Arab News, Sat, Aug 10, 2024 | Safar 6, 1446
UAE banks extend $232bn in credit to business and industrial sectors by May
Saudi Arabia:
UAE banks provided credit facilities worth 851.87 billion dirhams ($231.93
billion) to the business and industrial sectors by the end of May, reflecting a
3.18 percent year-on-year increase.
In its latest monthly statistical bulletin, the
Central Bank of the UAE revealed that national banks contributed 767.14 billion
dirhams, a 2.90 percent rise from the previous year, while foreign banks
increased their credit offerings by 5.79 percent year-on-year to 84.73 billion
dirhams.
This surge supports the UAE Strategy for the
Fourth Industrial Revolution, which aims to build a competitive economy through
advanced technologies that integrate material, digital and biological
innovations.
According to the CBUAE report, national banks
provided 25.7 billion dirhams in credit facilities to business and industrial
sectors from January to May, while foreign banks contributed 3.8 billion
dirhams.
Credit facilities to the private retail sector
totaled 441.29 billion dirhams by the end of May, up 9.41 percent year on year.
National banks provided 414.47 billion dirhams, with foreign banks adding 26.82
billion dirhams.
CBUAE added that credit facilities provided to the
private sector financial institutions by banks totaled 17.07 billion dirhams by
the end of May, representing a rise of 43.08 percent compared to the same period
in 2023. National banks contributed 16.21 billion dirhams, while foreign banks
offered 862 million dirhams.
The report also highlighted an 8.4 percent
increase in the total value of savings deposits, which reached 294.66 billion
dirhams in May. Savings in local currency amounted to 247.49 billion dirhams,
with deposits in foreign currencies at 47.17 billion dirhams.
Credit facilities extended to government-related
entities reached 298.14 billion dirhams by the end of May, representing a 16.93
percent increase from the same period in 2023. Of this amount, national banks
provided 280.58 billion dirhams, while foreign banks contributed 17.56 billion
dirhams.
For corporate firms in the UAE’s private sector,
total credit facilities amounted to 868.95 billion dirhams by the end of May.
National banks provided 783.35 billion dirhams, and foreign banks contributed
85.59 billion dirhams.
The growth in credit and savings deposits suggests
a positive outlook for the UAE’s financial sector and its role in supporting
various economic activities.