CBUAE's Q4 2023 Survey Shows Strong Credit Demand Amid Economic Growth

UAE, 17 April, 2024 :  The Central Bank of the UAE (CBUAE) has published its Q4 2023 Credit Sentiment Survey, highlighting the financing conditions and credit demand trends in the UAE's banking sector.

The survey reveals a strong credit appetite in Q4 2023, driven by accelerated economic growth and increasing confidence among consumers and businesses. While many banks were willing to meet rising loan demand, some tightened their credit standards.

Business loans saw the strongest demand, particularly in the construction, manufacturing, and trade sectors. For personal loans, growth was driven by credit cards and real estate-related borrowing. The influence of interest rates on loan demand has lessened, with lending rates declining towards the end of 2023.

The positive credit trends indicate a sustainable economic rebound post-Covid-19, with this momentum carrying into early 2024. Financial institutions remain optimistic amid this positive credit sentiment.

Initiated in 2014, the CBUAE’s Credit Sentiment Survey aims to understand factors influencing the local credit market and its broader impact on the UAE economy. The Q4 2023 survey is based on responses from 70 licensed financial institutions in the UAE, including 58 banks and 12 finance companies.

For detailed results of the Credit Sentiment Survey please click on the link below 

Credit Sentiment Survey

Source : www.centralbank.ae