UAE Central Bank issues Q4 2023 Credit Sentiment Survey report

UAE Central Bank issues Q4 2023 Credit Sentiment Survey report

The UAE Central Bank located on the Baynoonah street in Abu Dhabi.

Image Credit: Gulf News archives

Abu Dhabi: The Central Bank of the UAE (CBUAE) has issued its Q4 2023 Credit Sentiment Survey report, which covers recent changes in financing conditions and credit demand in the UAE’s banking sector.

Credit appetite remained strong during the last quarter of 2023, reflecting accelerated economic growth and rising consumer and business confidence. According to the Survey, many banks stated that they were increasingly willing to accommodate rising loan demand, though some banks tightened their credit standards.

Loan demand was strongest for business loans, especially in the construction, manufacturing and trade sectors. As for personal loans, demand growth was mainly driven by credit cards and real estate-related borrowing. The impact of interest rates on loan demand appears to have softened relative to previous quarters as lending rates have started declining towards the end of 2023.

Positive credit dynamics reflect persistent investment demand and indicate a sustainable post-Covid 19 rebound of economic activity. According to survey findings, this positive momentum has spilled over into the early part of this year. Banks and other licensed financial institutions remain optimistic against the background of positive overall credit sentiment.