The Central Bank of the UAE (CBUAE) announced that the demand for bank credit in the country is on the rise, driven by economic stability and significant investments, despite the increase in interest rates.
The CBUAE’s Credit Sentiment Survey for Q2 2024 reveals that a positive economic outlook and improving asset quality are enhancing financial institutions’ willingness to lend, WAM reported.
Survey findings indicate that strong credit demand is expected to persist through the third quarter of this year. The construction sector experienced the highest growth rate in credit demand during the second quarter, followed by manufacturing, real estate development, and retail and wholesale trade.
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In the second quarter, there was sustained robust demand for trade credit and an increased appetite for lending. Demand remained strong across all loan categories and industry sectors, particularly from large government entities and major corporations.
The survey highlighted that all emirates experienced a significant rise in credit demand during the second quarter, and this trend is anticipated to continue across all economic sectors over the next three months, especially in construction, real estate, manufacturing, and retail and wholesale sectors.
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