Fewer UAE residents, businesses avail loans amid COVID-19; lenders tighten norms

Fewer UAE residents, businesses avail loans amid COVID-19; lenders tighten norms

Fewer businesses and private individuals in the UAE have applied for loans during the second quarter of the year, as the uncertainty surrounding the coronavirus pandemic and low oil prices lessened borrowers' appetite for credit. At the same time, many banks have tightened requirement standards for getting credit. In the latest UAE Central Bank Credit Sentiment Survey, more than half (53 percent) of the respondents said the demand for loans has declined either substantially or moderately."[The] results for the second quarter show, as expected, a decline in credit appetite within the UAE, both for business and personal loans,“ the bank regulator said in a report."This reflects the heightened uncertainty about economic activity due to the COVID-19 pandemic, reduced global growth and a low oil price environment,“ it added.The UAE government has