UAE banks defer $4.3 billion in loans for nearly 156,000 customers

The Central Bank of the UAE (CBUAE) has granted loan relief to 155,970 bank customers, covering loans worth Dh15.9 billion ($4.33 billion), Gulf News reported. The measures run through August.

The regulator disclosed the figures on October 5, after Governor Khaled Mohamed Balama met bank chief executives.

How much loan relief has the UAE central bank given?

The CBUAE has deferred repayments on loans worth Dh15.9 billion. The relief reaches 155,970 customers, including individuals, small businesses and large companies. It covers payment deferrals and waivers of commissions and fees. The measures apply to loans through the end of August.

Who received the most UAE central bank loan relief?

Individuals form the largest group. A total of 148,681 retail customers received repayment deferrals worth Dh2.3 billion ($626 million).

About 849 private sector companies received Dh10.7 billion ($2.91 billion) in support. Another 6,441 small and medium-sized enterprises (SMEs) secured deferrals worth Dh2.9 billion ($790 million). The package also waives commissions and fees.

What is the Financial Institutions Resilience Package?

The CBUAE launched the Financial Institutions Resilience Package (FIRP) in March. This followed the regional conflict that broke out on February 28. The scheme aims to protect business growth and the wider economy.

Borrowers made strong use of such schemes. On May 8, data showed 65,300 customers had benefited from relief worth Dh6.2 billion ($1.69 billion). By July 30, deferrals reached Dh13.5 billion ($3.68 billion) across 135,031 customers.

Lenders including Abu Dhabi Islamic Bank and Emirates NBD ran their own schemes alongside. They offered deferrals and fee waivers.

How have UAE banks performed during the relief period?

Banks held firm throughout. Assets rose 12.9 percent year-on-year by the end of August. Lending jumped 18.8 percent, and deposits grew 13 percent.

The non-performing loan ratio fell to 2.6 percent, while the net ratio improved to 1.2 percent.

Balama urged lenders to speed up digital transformation, strengthen consumer protection and widen financial inclusion. He also called for tight governance, risk management and compliance.

Has the UAE offered loan relief before?

The UAE has done this before. In 2020, during the COVID-19 outbreak, the CBUAE announced a Dh256 billion ($69.7 billion) stimulus. It included a Dh50 billion liquidity relief tool for eligible customers seeking deferrals.

Retail borrowers received three-month repayment deferrals with zero charges. Banks waived interest for the deferral period.