Demand for business credit and personal loans in the UAE rose slightly in the second quarter of 2017 and is expected to continue to increase slowly in the current quarter, according to the central bank.
The latest Credit Sentiment Survey from the UAE Central Bank showed that demand for business loans stabilised in the April to June quarter, and the previous one.
The net balance measure for business lending was plus 7.5 in the latest quarter compared to plus 7.6 in the previous quarter.
The figure is reached by calculating the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall in demand.
The survey found that more than 50 percent of survey respondents reported no changes in credit standards during the second quarter, while 25-30 percent reported a modest tightening.
Just over one-fifth – 21.9 percent – of respondents reported a decrease in demand. By loan type, increase in demand was most evident among conventional loans and large firms, the survey showed.
Demand is expected to pick up in the third quarter of 2017, it said, with respondents forecasting the net balance measure to rise to plus 16.3.
The central bank’s report said: “Survey respondents were optimistic and expected the demand for business loans to increase.
“By emirate, the strengthening in loan demand was attributable to the stronger demand across the board.”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.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.