UAE personal loans jump 46% in year to June

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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