Over the course of 12 months, national banks in the country have extended AED40.6 billion in financing to support the commercial and industrial sectors.
National banks in the United Arab Emirates (UAE) have witnessed a significant rise in credit financing provided to the business and industrial sectors. According to the latest statistics released by the Central Bank of the UAE, credit financing extended by national banks increased by AED40.6 billion or 5.8 percent as of the end of April 2023, highlighting the growing support for these crucial sectors.
The statistics reveal that national banks disbursed a total of AED737.3 billion in credit to the business and industrial sectors, reflecting an increase from the AED696.7 billion provided in April 2022. This upward trend reflects the commitment of national banks to support businesses and industries across the UAE, fostering economic growth and development.
In April, national banks further strengthened their credit balance by an additional AED2.1 billion or 0.3 percent, reaching AED735.2 billion compared to AED735.2 billion in March. This continuous credit expansion signifies the unwavering commitment of national banks to meet the financing needs of businesses and industries, driving economic prosperity in the country.
The statistics underline the dominance of national banks in providing credit financing to the business and industrial sectors. As of the end of April, national banks accounted for 90 percent of the total credit balance, equivalent to AED818.9 billion, while foreign banks contributed only 10 percent or AED81.6 billion. This demonstrates the pivotal role played by national banks in fueling economic growth and supporting the local business landscape.
Analyzing the credit distribution among different emirates, Abu Dhabi emerged as the leading contributor, providing AED365.6 billion in credit financing to the business and industrial sectors. Banks in Dubai followed closely, extending AED351.3 billion, while banks in other emirates collectively offered AED102 billion. This geographically diversified credit allocation showcases the commitment of UAE banks to drive economic growth across the entire nation.
Traditional banks remained the primary source of credit financing for the business and industrial sectors, accounting for AED675.5 billion or 82.5 percent of the total credit provided. Islamic banks also played a significant role, contributing AED143.4 billion or 17.5 percent. This indicates the strong presence of both conventional and Islamic banking systems in supporting the diverse needs of businesses and industries in the UAE.
The notable increase in credit financing provided by national banks to the business and industrial sectors underscores their pivotal role in driving economic growth and supporting the UAE’s development agenda. The continued expansion of credit reflects the confidence of national banks in the resilience and potential of local businesses. As national banks lead the way in financing the business and industrial sectors, the UAE’s economy is poised for sustained growth and prosperity.
The UAE’s national banks have demonstrated their commitment to fostering economic growth by providing increased credit financing to the business and industrial sectors. As of April 2023, credit financing extended by these banks has risen by AED40.6 billion or 5.8 percent, according to the latest statistics released by the Central Bank of the UAE.
The total credit financing disbursed by national banks to the business and industrial sectors now stands at AED737.3 billion, showcasing a significant increase compared to the AED696.7 billion provided in April 2022. This surge in credit financing underlines the support provided by national banks to businesses and industries across the UAE, playing a crucial role in driving economic development.
The upward trend in credit financing continued in April, as national banks expanded their credit balance by an additional AED2.1 billion or 0.3 percent, reaching AED735.2 billion. This consistent growth in credit allocation demonstrates the unwavering commitment of national banks to meet the financing requirements of businesses and industries, contributing to overall economic prosperity.
National banks have emerged as the dominant providers of credit financing to the business and industrial sectors, accounting for 90 percent of the total credit balance. Their contribution amounts to a substantial AED818.9 billion, while foreign banks provided a relatively smaller portion of 10 percent, equivalent to AED81.6 billion. This emphasizes the pivotal role played by national banks in driving economic growth and supporting local businesses.
An analysis of credit distribution among different emirates reveals that Abu Dhabi is the leading contributor, providing AED365.6 billion in credit financing to the business and industrial sectors. Dubai follows closely behind, with banks extending AED351.3 billion, while other emirates collectively contribute AED102 billion. This geographical diversification of credit allocation showcases the commitment of UAE banks to drive economic growth across the entire nation.
