{"id":104196,"date":"2025-05-30T00:00:00","date_gmt":"2025-05-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/"},"modified":"2025-05-30T00:00:00","modified_gmt":"2025-05-30T00:00:00","slug":"credit-demand-sustains-strong-growth-in-1q-2025-cbaue","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/","title":{"rendered":"Credit demand sustains strong growth in 1Q 2025 -CBAUE"},"content":{"rendered":"

Credit deman<\/strong>d in the UAE upheld robust growth in 1Q 2025, <\/strong>driven by an improved economic outlook and favorable investment climate, according to the Central Bank of the UAE\u2019s (CBUAE) 1Q 2025 Credit Sentiment Survey (pdf)<\/a>. The survey, based on 290 responses from senior credit officers at licensed financial institutions across Abu Dhabi, Dubai, and the Northern Emirates, highlights rising credit activity across all emirates and sectors.<\/p>\n

Business loan demand gained more momentum in 1Q,<\/strong> with 58.3% of respondents reporting higher demand, while only 4.5% noted a decline. Abu Dhabi saw the strongest growth, with demand rising moderately across all emirates. The growth was fueled by \u201crobust economic conditions, working capital needs, and solid investment,\u201d according to the survey. <\/span>Interest rates<\/a> were also a key driver of credit demand since they were cut in December.<\/span><\/p>\n

All sectors witnessed an increase in loan demand<\/strong>, with large firms taking the lead, followed by SMEs and government-related entities (GREs). The retail and wholesale trade saw the highest growth rate, followed by construction, manufacturing, property development, and electricity, gas & water sectors. <\/p>\n

Looking ahead,<\/strong> business credit demand is expected to continue to see gains over 2Q 2025, led by large firms. \u201cAll economic sectors are expected to see higher demand growth, with the most significant increases in construction, retail and wholesale trade, manufacturing, and property development,\u201d according to the survey.<\/p>\n

Personal loan demand also rose during 1Q,<\/strong> with Dubai taking the lead, boosted by strong economic conditions, rising incomes and a favorable interest rate influence. Housing loans, credit cards and personal loans saw the highest demand. \u201cFinancial institutions' willingness to extend personal loans has been primarily driven by a positive economic outlook, alongside improving bank asset quality and stable borrower creditworthiness,\u201d according to the survey. <\/p>\n

Positive outlook: <\/strong>Financial institutions anticipate further growth in loan demand, with robust economic conditions and rising incomes expected to support future demand, particularly for credit cards, personal, housing, and car loans. <\/p>\n

Premiums<\/strong> on riskier loans, maximum LTV\/LTI ratios, and non-interest fees & charges for personal loans rose during the quarter<\/strong>, while the spread of loan rates over the cost of funds narrowed marginally.<\/p>\n

The share of rejected personal loan applications also saw a marginal increase during the quarter<\/strong>, as greater rejection rates in credit card applications and car loans outweighed the drop in housing-related loan rejections. Despite this, financial institutions showed an increased appetite for lending, supported by a strong economic outlook, improved asset quality, and stable borrower creditworthiness.<\/p>\n","protected":false},"excerpt":{"rendered":"

Demand was lifted by greater investment, working capital needs, and robust economic conditions<\/p>\n","protected":false},"author":1,"featured_media":104197,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1618],"tags":[159,157,1391,7],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-104196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-banking","tag-central-bank-of-the-uae","tag-debt","tag-enterpriseam-uae","wpautop","entry"],"acf":{"mongo_id":"9f85edaa-e11a-4ecd-a50e-767fde459d9a","order":"9","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/3\/1512.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Credit demand sustains strong growth in 1Q 2025 -CBAUE","related_issue":[104180],"teaser":"Demand was lifted by greater investment, working capital needs, and robust economic conditions","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/5\/.55b6fad5-0beb-43ee-82de-a574855dd516.mp3"},"yoast_head":"\nCredit demand sustains strong growth in 1Q 2025 -CBAUE - UAE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Credit demand sustains strong growth in 1Q 2025 -CBAUE\" \/>\n<meta property=\"og:description\" content=\"Demand was lifted by greater investment, working capital needs, and robust economic conditions\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\" \/>\n<meta property=\"og:site_name\" content=\"UAE\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-30T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Credit demand sustains strong growth in 1Q 2025 -CBAUE\",\"datePublished\":\"2025-05-30T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\"},\"wordCount\":415,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1\",\"keywords\":[\"banking\",\"Central Bank of the UAE\",\"debt\",\"EnterpriseAM UAE\"],\"articleSection\":[\"Banking\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\",\"url\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\",\"name\":\"Credit demand sustains strong growth in 1Q 2025 -CBAUE - UAE\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2025-05-30T00:00:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/uae\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Credit demand sustains strong growth in 1Q 2025 -CBAUE\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#website\",\"url\":\"https:\/\/enterpriseam.com\/uae\/\",\"name\":\"UAE\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/uae\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#organization\",\"name\":\"UAE\",\"url\":\"https:\/\/enterpriseam.com\/uae\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/42998.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/42998.svg\",\"caption\":\"UAE\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/uae\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Credit demand sustains strong growth in 1Q 2025 -CBAUE - UAE","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/","og_locale":"en_US","og_type":"article","og_title":"Credit demand sustains strong growth in 1Q 2025 -CBAUE","og_description":"Demand was lifted by greater investment, working capital needs, and robust economic conditions","og_url":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/","og_site_name":"UAE","article_published_time":"2025-05-30T00:00:00+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Credit demand sustains strong growth in 1Q 2025 -CBAUE","datePublished":"2025-05-30T00:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/"},"wordCount":415,"publisher":{"@id":"https:\/\/enterpriseam.com\/uae\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1","keywords":["banking","Central Bank of the UAE","debt","EnterpriseAM UAE"],"articleSection":["Banking"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/","url":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/","name":"Credit demand sustains strong growth in 1Q 2025 -CBAUE - UAE","isPartOf":{"@id":"https:\/\/enterpriseam.com\/uae\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1","datePublished":"2025-05-30T00:00:00+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/uae\/2025\/05\/30\/credit-demand-sustains-strong-growth-in-1q-2025-cbaue\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/uae\/"},{"@type":"ListItem","position":2,"name":"Credit demand sustains strong growth in 1Q 2025 -CBAUE"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/uae\/#website","url":"https:\/\/enterpriseam.com\/uae\/","name":"UAE","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/uae\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/uae\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/uae\/#organization","name":"UAE","url":"https:\/\/enterpriseam.com\/uae\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/42998.svg","contentUrl":"https:\/\/ent.news\/internal\/42998.svg","caption":"UAE"},"image":{"@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/uae\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/uae\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/uae\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/1512.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/posts\/104196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/comments?post=104196"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/posts\/104196\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/issue\/104180"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/media\/104197"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/media?parent=104196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/categories?post=104196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/tags?post=104196"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/brand?post=104196"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/uae\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=104196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}