UAE bank lending is expanding at nearly three times the pace of Gulf peers, with gross credit reaching AED 2.76 trillion at end-June 2026 – up 18% year-on-year and 7% since December.
Annual credit growth in Saudi Arabia and Kuwait stood at 6.8% each, with Qatar at 5.3%. The outperformance is driven by foreign lending, which surged 38% year-on-year to AED 582 billion, fuelled by international expansion at First Abu Dhabi Bank across 20 markets and Emirates NBD, which recently acquired a majority stake in India's RBL Bank.
Government and government-related entity borrowing rose 28% year-on-year to a combined AED 602 billion, partly accelerated by Iran conflict-linked spending. Major UAE banks now forecast 15–20% loan growth for 2026, with Jefferies International in Dubai projecting 15% annual sector credit expansion through 2028. Asset quality has held firm, with Emirates NBD's non-performing loan ratio falling to 2.1% and FAB's unchanged at 2.2%.
Gulf Economist Staff Writer