Banks provided 16.8 billion dirhams during a year
Individual loans to the highest level in 6 years by the end of November 2021
Total individual financing amounted to 347.4 billion dirhams at the end of November 2021.
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Amjad Nasr: "Personal finance will continue to grow during the coming period, supported by the increase in employment, the return of economic activity and the rise in oil prices."
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Banks operating in the country provided financing to individuals worth 16.8 billion dirhams during a year (between November 2020 and November 2021), distributed between personal loans, car financing, credit cards and others, according to the latest data issued by the Central Bank, which also showed that the value of these financings is the highest In 12 months, over the past six years.
The total financing of individuals at the end of November 2021 amounted to about 347.4 billion dirhams, compared to 330.6 billion dirhams at the end of November 2020, an increase of 16.8 billion dirhams, equivalent to a growth of 5.1% during the 12-month period.
For his part, the banking expert, Amjad Nasr, told "Emirates Today", "The economic activity in the Emirates returned in full force throughout 2021, and witnessed many major events, on top of which was the opening of the (Expo 2020 Dubai) exhibition, in addition to the remarkable activity in the real estate market. And the resumption of tourism activity and air traffic, and the return of commercial activities as well,” he explained, explaining that banks, during the first six months of the outbreak of the “Corona” pandemic, had a lot of reservations in granting individuals financing, given the negative effects that some sectors witnessed and the accompanying dismissal of some employees or a reduction in the number of employees. Others' salaries.
He added, "This situation changed a lot during 2021, as many employees returned to their work and companies took the initiative to appoint new employees, and the wheel of the economy turned at a faster pace, so it is natural for banks to keep pace with this activity and raise the pace of lending and ease its conditions, after the high risk rates that They prevailed during the height of the spread of (Corona),” noting that the same demand by individuals increased, whether to buy a car or take personal financing, a credit card or other banking products designated for them.
He considered that this is a great evidence of confidence in the country's economy and its ability to absorb the negative effects of "Covid-19".
Nasr added, "A number of government agencies in the UAE announced new initiatives and projects, along with great support for the private sector, which created a positive general situation related to job opportunities and jobs that helped the banking sector recycle its high liquidity."
He pointed out that banks have large amounts of liquidity that they are looking to inject into various economic sectors, particularly retail loans to individuals, as they are the least risky category due to clear criteria for lending, as well as guaranteeing these financings, whether through salary or guaranteed personal income.
Nasr expected that "individuals' finances will continue to grow during the coming period, supported by the increase in employment and the return of full economic activity, as well as the rise in oil prices, which ultimately lead to an increase in growth rates."
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