UAE central bank survey shows rebound in credit demand
Demand for credit in the United Arab Emirates rebounded in the January-March quarter after dipping during the previous quarter, a central bank survey showed on Thursday.
The net balance measure for business lending – the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall in demand – climbed to plus 13.6 in the first quarter from minus 8.1 in the fourth quarter of 2015.
The survey found respondents expect the net balance measure to rise further to plus 24.6 in the current quarter.
“However, the ongoing tightening credit conditions for business loans suggested reduced willingness to extend business loans among financial institutions, partially reflecting the negative impact of lower oil prices,” the central bank said.