UAE credit growth slows in May

13 July 2011

Total value of loans falls by 0.5 per cent in May

Lending slowed in the UAE in May, according to data from the Central Bank of the UAE.

Loans and advances fell by 0.5 per cent to AED1.049 trillion ($287bn), from AED1.054 trillion in April as banks continue to remain risk averse. Compared to May last year, loan growth was 2.7 per cent.

UAE bank deposits also dropped in May, to AED1.123 trillion, a fall of 0.4 per cent compared to April.

The continued weakness in UAE loan growth is a worry for the economy, which is predicted to grow by 3.3 per cent in 2011 by the Washington-headquartered IMF.

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