UAE bank lending on the rise

13/01/2012 - Dubai Investment News Posted Bob Brunskill
UAE bank lending on the rise

Property investors in the Middle East could be among those encouraged by the fact that bank lending is on the rise in UAE.According to the latest figures from Central Bank, lending in the emirate increased by 4.2 per cent in the first 11 months of 2011.The data covers lending by 51 local and foreign firms operating in the UAE and marks a significant improvement on the 1.3 per cent decline recorded over the same period in 2010, Emirates 24-7 reported.With bank lending on the rise, a number of property investors could be tempted to expand their portfolios.However, Timucin Engin, associate director at Standard & Poor's, told that news provider that the growth outlook is limited due to existing challenges."Although the funding profile of the banks in the UAE has improved considerably since the 2008 crisis, the loans to deposits ratio of the system remains stretched and the overall funding conditions are not necessarily accommodating for a strong credit growth," he commented.