UAE banking system expands to finance 10 economic sectors

Media In – Abu Dhabi – 10 September 2018 – WAM

Figures from the Central Bank of UAE showed that the volume of credit extended to 10 vital economic sectors witnessed good growth in a move that reflects the high level of business activity since the beginning of this year, prompting banks to continue to provide financing for their activity. The first reading of the list of economic sectors, which received financing from banks, led the construction and real estate sector to the first place. The total balance of financing amounted to about 306.6 billion dirhams during the first half of this year, an increase of 8.5 billion dirhams compared to the end of 2017. The real estate activities are among the most important sectors supporting the national economy. The percentage of participation in the non-oil GDP of the country reached 6.4% at constant prices and reached 81.2 billion dirhams in 2017 compared to 79 billion dirhams in 2016. The total value of the bank’s total financing reached AED 157 billion at the end of June 2009, an increase of 4.5 billion dirhams compared to last December. The sector’s participation in non-oil GDP at constant prices reached 16.6% at the end of last year, which is an indication of the importance it enjoys in supporting the national economy and diversifying the income base of the UAE in general. The situation in the water and electricity sector did not differ from the AED 16.7 billion in December 2017. According to Ministry of Economy statistics, the contribution of the water and electricity sector in the country’s non-oil GDP to 4.6% in 2017. The bank’s financing of the mining and quarrying sector amounted to AED 800 million during the first six months of this year, raising its total financing balance to AED 12.9 billion. The balance of financing of financial institutions increased to AED 129 billion, an increase of AED 1.5 billion . On the other hand, the banks expanded the provision of personal financing for commercial purposes by 3.2 billion dirhams, which raised the total balance to 83.2 billion dirhams at the end of June and the rest of the other economic sectors.