The Central Bank of the UAE (CBUAE) reported that bank credit demand is increasing, driven by economic stability and strong investments, despite rising interest rates.
According to the CBUAE’s Credit Sentiment Survey for Q2 2024, a positive economic outlook and improving asset quality continue to support financial institutions’ lending activities. The survey suggests that strong credit demand is expected to persist into the third quarter of 2024.
The construction sector led credit demand growth in Q2, followed by manufacturing, real estate development, and retail and wholesale trade. Trade credit also saw strong demand, with large government entities and corporates contributing significantly.
The survey noted that all emirates experienced rising credit demand during Q2, with expectations for continued strong demand across all sectors, particularly in construction, real estate, manufacturing, retail, and wholesale trade over the next three months.
