Demand for business loans in the UAE rose in the second quarter of 2018 while demand for personal loans also rebounded slightly, according to a central bank survey.
According to the survey respondents, 44.7 percent reported no change, 39.8 percent reported an increase in demand, while 15.4 percent reported a moderate decrease in demand.
By emirate, the survey reported an increase in demand across the UAE, most significantly in Abu Dhabi after a decline in the previous quarter.
The net balance measure for business lending - the percentage of respondents reporting an increase in demand for loans minus those reporting a fall - rose to +11.8 in April-June from +4.6 in the previous quarter.
For the current quarter, respondents said they expect a further rise to +16.3, while they also think credit standards will tighten further, the survey added.
For personal loans, demand during Q2 increased marginally, recovering from the decline in demand registered in the previous quarter.
The factors that most significantly contributed to the change in demand were financial markets outlook, change in income, and interest rates.
The survey respondents said they expect that demand for personal loans will increase in the third quarter with the exception of the Northern Emirates, where it is predicted to remain unchanged.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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