UAE business loan demand up in Q3, personal loans fall

Demand for business loans in the United Arab Emirates increased in the July-September quarter but demand for personal loans shrank, a central bank survey showed on Sunday.

The net balance measure for business lending – the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall – rose to plus 14.0 in the quarter from plus 11.8 in the previous quarter.

For the current quarter, companies expect a further rise to plus 22.4, with demand anticipated to increase in all emirates.

However, demand for personal loans fell back into negative territory in the July-September quarter with a net balance measure of minus 9.6. The decline was most evident in Abu Dhabi.