UAE bank customers receive Dh16 billion financial relief on loans

Dubai - The Central Bank of the UAE (CBUAE) has provided financial relief to 155,970 bank customers across the nation, covering loans worth Dh15.9 billion ($4.33 billion) until the end of August. The majority of recipients were individuals, with 148,681 retail customers receiving repayment deferrals totaling Dh2.3 billion ($626 million).

Additionally, about 849 private sector companies and 6,441 small and medium-sized enterprises (SMEs) benefited from Dh10.7 billion ($2.91 billion) in support and Dh2.9 billion ($790 million) in deferrals, respectively. The package, launched in March amidst regional conflict, aims to safeguard business growth and the broader economy.

Borrowers have heavily utilized such assistance; as of May 8, 65,300 customers had received Dh6.2 billion ($1.69 billion) in relief, while by July 30, deferrals had amounted to Dh13.5 billion ($3.68 billion) across 135,031 customers. Financial institutions, such as Abu Dhabi Islamic Bank and Emirates NBD, have also implemented their own measures, offering deferrals and fee waivers.

As of August, UAE banks' assets grew by 12.9% year-on-year, lending surged by 18.8%, deposits expanded by 13%, the non-performing loan ratio declined to 2.6%, and the net ratio improved to 1.2%. Governor Khaled Mohamed Balama emphasized the need for banks to accelerate digital transformation, enhance consumer protection, and broaden financial inclusion, alongside maintaining tight governance, risk management, and compliance.