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Discuss this article (1 Comments)UAE personal loans jump 46% in year to June
by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 01 September 2008
MARKET REGULATOR: Library photo of the UAE central bank building in Abu Dhabi. (Getty Images)
Consumer loans in the UAE have increased 46 percent during the past 12 months, according to data from the UAE Central Bank.
The latest data on bank loans and money supply in the country and published on the bank's website showed that personal loans rose to Dh54.02 billion ($14.68 billion) at the end of June 2008 compared to Dh36.80 billion in June 2007.
The data are estimates and subject to revision.
Bank data also showed that consumer loans have risen more than 73 per cent since the end of 2006 and almost doubled during the past four years.
The strong growth in personal loans is seen as a moajor contributary factor to higer inflation and the central bank recently raised the possibility of placing limits personal loans.
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No surprise really
Posted by Tanib, Dubai, United Arab Emirates on Tuesday 2 September 2008 at 18:01 UAE time
This is not so surprising, with the cost of renting accommodation so shockingly high and the fact that you have to pay so much upfront, how else are the majority of people supposed to afford to pay this, (unless of course you are still one of the lucky ones that gets company accommodation) without taking a bank loan. The sad fact is people are getting further and further into debt and simply can't affort to leave the country, should they so wish, especially when there is a very good chance that almost 50% of their salary goes towards simply putting a roof over their heads.
Posted by Tanib, Dubai, United Arab Emirates on Tuesday 2 September 2008 at 18:01 UAE time
This is not so surprising, with the cost of renting accommodation so shockingly high and the fact that you have to pay so much upfront, how else are the majority of people supposed to afford to pay this, (unless of course you are still one of the lucky ones that gets company accommodation) without taking a bank loan. The sad fact is people are getting further and further into debt and simply can't affort to leave the country, should they so wish, especially when there is a very good chance that almost 50% of their salary goes towards simply putting a roof over their heads.
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