Central Bank Defers Dh15.9 Billion in Loans for Individuals and Businesses.
Dubai: The Central Bank of the UAE (CBUAE) has extended financial support to 155,970 banking customers across the country, with relief measures covering Dh15.9 billion ($4.33 billion) in loans and continuing until the end of August.
Individual borrowers accounted for the majority of beneficiaries. Around 148,681 retail banking customers were granted repayment deferrals valued at Dh2.3 billion ($626 million).
The central bank revealed the figures on October 5 following a meeting between CBUAE Governor Khaled Mohamed Balama and chief executives of banks operating across the UAE.
Businesses also received substantial support under the initiative. Around 849 private-sector companies benefited from Dh10.7 billion ($2.91 billion) in relief, while 6,441 small and medium-sized enterprises (SMEs) secured loan deferrals totalling Dh2.9 billion ($790 million). The measures also include waivers on certain fees and commissions.
The CBUAE introduced the Financial Institutions Resilience Package (FIRP) in March following the regional conflict that began on February 28. Through the programme, the central bank aims to support the continuity of business activity and help safeguard broader economic growth.
Borrowers have increasingly taken advantage of the relief measures since they were introduced. As of May 8, around 65,300 customers had received support covering Dh6.2 billion ($1.69 billion) in loans. By July 30, the value of deferred repayments had climbed to Dh13.5 billion ($3.68 billion), benefiting 135,031 customers.
Several UAE lenders, including Abu Dhabi Islamic Bank and Emirates NBD, also introduced their own support measures alongside the central bank initiative, providing eligible customers with repayment deferrals and waivers on certain fees.
Despite the scale of the relief provided, the UAE banking sector continued to record strong financial indicators. Total banking assets increased 12.9 per cent year-on-year by the end of August, while lending rose 18.8 per cent and deposits grew 13 per cent.
Asset quality also improved, with the non-performing loan ratio declining to 2.6 per cent and the net non-performing loan ratio reaching 1.2 per cent.
CBUAE Governor Khaled Mohamed Balama called on banks to accelerate their digital transformation efforts, enhance consumer protection and expand financial inclusion. He also emphasised the importance of maintaining strong governance, risk management and regulatory compliance.
The latest measures are not the first time the UAE has used large-scale banking support to help borrowers during periods of economic disruption.
During the COVID-19 pandemic in 2020, the CBUAE unveiled a Dh256 billion ($69.7 billion) stimulus package. The programme included a Dh50 billion liquidity support facility designed to help eligible customers seeking repayment deferrals. Retail borrowers were offered three-month payment deferrals without additional charges, while participating banks also waived interest during the deferral period.
