UAE business loan demand up in Q3, personal loans fall

Demand for business loans is set to rise further in Q4

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.