The total value of home loans extended by banks in the UAE slumped to AED15bn in the first 11 months of 2009, down from AED74bn the previous year, it was reported on Wednesday.
Central Bank figures showed growth in domestic mortgage credit fell from around 123 percent during 2008 to just 12 percent during January-November 2009, Emirates Business reported.
Tight credit policies at the UAE’s 24 national banks and 28 foreign units contributed to the sharp slowdown while poor investors’ confidence was also a factor.
Personal loans were also hit, according to the figures, with those for business purposes rising by only around AED10bn in the first 11 months of 2009 compared with an increase of nearly AED54bn in 2008.
The paper also reported that personal loans shrank slightly after leaping by nearly AED26bn in 2008.
The figures showed total credit in the UAE grew by only around 4.6 percent in the first 11 months of 2009 compared with 47.6 percent in 2008.
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