In the first quarter of 2024, credit facilities provided by the UAE’s national banks to the business and industrial sectors amounted to AED15.6 billion ($4.24 billion), according to the latest figures released by the Central Bank of the United Arab Emirates (CBUAE).
Growth in cumulative credit balance
The CBUAE’s data showed that the cumulative credit balance for these two sectors rose by 2.1 percent to AED757.4 billion ($206.2 billion) by the end of March 2024, up from AED741.8 billion ($201.96 billion) at the end of December 2023. This represents a year-over-year growth of 3.02 percent, or AED22.2 billion, from AED735.2 billion in March 2023.
The cumulative credit balance grew by AED9.3 billion or 1.24 percent from AED748.1 billion in February 2024.
Dominance of national banks
National banks provided the majority of credit to these sectors, accounting for AED841.7 billion or 90 percent of the combined credit balance by the end of the first quarter of 2024. Foreign banks had a much smaller share of 10 percent, or AED84.3 billion.
Regional breakdown of credit
Geographically, the credit balance from banks in Abu Dhabi was around AED374.1 billion in Q1-24, while banks in Dubai provided AED363.3 billion, and other emirates lent AED104.3 billion to these sectors.
Read more: UAE banks lead regionally with $18.6 million in revenue per branch
Conventional vs Islamic banking
Conventional banks accounted for approximately AED694 billion, or 82.5 percent, of the credit financing provided to the trade and industry sectors by the end of March 2024. Islamic banks held a 17.5 percent share, or approximately AED147.7 billion.
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