Abu Dhabi, April 16, 2023 – The Central Bank of the United Arab Emirates issued a report on the results of the credit trends survey for the fourth quarter of the year 2023, which covers the recent changes related to the financing situation and the demand for loans and credit in the banking sector in the country.
The results of the questionnaire showed continued strong demand for loans and credit in the business sector and individual consumers during the last quarter of 2023, which reflects the accelerated economic growth in the country and the high confidence of consumers and operating companies.
According to the results of the questionnaire, many banks and finance companies operating in the country expressed their willingness to meet the growing demand for loans, despite the tightening of credit standards by some banks.
The results of the questionnaire showed that demand for business loans increased at a strong pace, especially in the construction, manufacturing, and trade sectors, while credit cards and borrowing related to the real estate market played a major role in the growth of 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 results showed that the vitality of the rise in credit 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 that this positive momentum will extend to the beginning of this year, and that banks and other licensed financial institutions will remain optimistic in their expectations. Positivity regarding credit and demand for loans.
It is worth noting that 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 are 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.
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