Credit facilities extended by UAE national banks to the business and industrial sectors amounted to AED 25.7 billion ($7 billion) during the first five months of 2024, according to the latest figures from the Central Bank of the United Arab Emirates (CBUAE).
The apex bank’s data revealed a 3.5% rise in the cumulative credit balance for these two sectors, reaching AED 767.2 billion by the end of May 2024, up from AED 741.8 billion at the end of December 2023.
The cumulative credit balance increased by AED 6.8 billion, or 0.9%, from AED 760.4 billion in April, showing a year-on-year growth of 2.9%, or AED 21.7 billion, from AED 745.5 billion in May 2023.
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National banks provided the bulk of the credit to the business and industrial sectors, totaling AED 851.9 billion by the end of May 2024, which represents 90.1% of the combined credit balance for these sectors. Foreign banks accounted for a smaller share, providing AED 84.7 billion, or 9.9%.
In terms of regional distribution, banks in Abu Dhabi extended around AED 384.8 billion in credit by May 2024, while banks in Dubai provided AED 362.2 billion, and banks in other emirates lent AED 104.9 billion to these sectors.
Conventional banks were responsible for approximately AED 701.7 billion, or 82.4%, of the credit financing to the trade and industry sectors by the end of May 2024. Meanwhile, Islamic banks contributed AED 150.2 billion, equating to 17.6%.
