UAE Banks Grant 11 Billion Dirhams in New Personal Financing in Q1 2023
Abu Dhabi – In the first quarter of this year, UAE banks provided 11 billion dirhams in new personal financing to individuals. The total balance of individual borrowing reached over 487 billion dirhams by the end of March, accounting for more than 29% of the total credit granted by banks during the same period, as reported by Al-Bayan newspaper.
According to recent indicators from the UAE Central Bank, 80% of the total balance of personal financing at the end of Q1 2023 was allocated to consumer purposes. This segment experienced a growth of approximately 7 billion dirhams, reaching 390.5 billion dirhams. Compared to the same period last year, consumer financing increased by more than 10% by the end of March.
On the other hand, personal loans directed towards commercial purposes accounted for about 20% of the total. This category saw an increase of around 4 billion dirhams, reaching 96.8 billion dirhams. However, the total balance of personal financing for commercial purposes decreased by about 12 billion dirhams compared to the end of March 2022, which was over 106 billion dirhams.
Analyzing the Central Bank’s data over the past two years, it is evident that the balance of personal financing for commercial purposes has remained relatively stable, maintaining a similar balance to that of the end of March 2021. In contrast, consumer financing for individuals experienced a significant jump of approximately 15% compared to the first quarter of 2021.
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Nominations:
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What factors contributed to the strong performance of UAE banks in the first quarter of 2023?
In conclusion, the UAE banks have shown a strong performance in the first quarter of 2023, granting a significant amount of new personal financing to individuals. With a total balance of over 487 billion dirhams, personal borrowing accounted for a notable portion of the overall credit granted by banks during this period. Consumer financing emerged as the dominant segment, experiencing substantial growth and reaching 390.5 billion dirhams. On the other hand, personal loans for commercial purposes recorded a smaller portion of the total balance, with a decrease compared to the previous year. Despite this, the balance of personal financing for commercial purposes has remained relatively stable over the past two years. Overall, the data indicates a positive trend in personal financing, particularly for consumer purposes. Investors interested in trading and investing in Gulf stock exchanges can explore opportunities in the region.
This is truly impressive news! The fact that UAE banks have granted a whopping 11 billion Dirhams in personal financing just in the first quarter of 2023 is a testament to the strong financial sector in the country. It’s remarkable to see such a significant amount being made available for individuals in need of financial support.
This data highlights the confidence that UAE banks have in the stability and growth of the economy, as they continue to extend credit to borrowers. Whether it’s for home renovations, education expenses, or personal investments, this level of personal financing can have a positive impact on individuals’ lives and contribute to overall economic growth.
The availability of personal financing demonstrates the commitment of UAE banks to cater to the diverse needs of their customers. As long as the necessary checks and balances are in place to ensure responsible lending practices, this could be a great opportunity for individuals to meet their financial goals and aspirations.
Moving forward, it is crucial that banks continue to prioritize transparency and responsible lending to avoid any potential setbacks. By maintaining a healthy lending ecosystem, these institutions can ensure sustained growth and stability for both lenders and borrowers.
Overall, this report is a promising indicator of economic prosperity and financial accessibility for individuals in the UAE. It portrays a positive outlook for the future, as the country continues to thrive in the banking industry by providing diverse financial solutions tailored to meet the needs of its residents.