UAE Central Bank: Strong Credit Demand Growth in Q3 Driven by Construction and Credit Cards

The demand for corporate loans in the UAE recorded a net balance of +23.9 percentage points during Q3 2025, with 52.9% of banks surveyed reporting increased demand, while 41.3% noted no change, and 5.8% reported a decline.

Dubai led the growth across the UAE, followed by Abu Dhabi and the Northern Emirates, according to a survey conducted by the Central Bank from September 19 to October 24, 2025, involving 255 credit officials from various banks and financial institutions in the country.

The construction sector topped the list of sectors with the highest demand for financing with a net balance of +20.8 percentage points, followed by real estate development (+20.1%), retail and wholesale (+18.5%), and manufacturing (+17.5%).

All sectors experienced growth in demand, except for mining and quarrying, which saw a slight decline of -0.5 percentage points. Large companies were the most demanding for loans, followed by government entities and small and medium-sized enterprises.

In personal lending, demand recorded a net balance of +18.6 percentage points, with Dubai also leading growth among Emirates. Credit cards achieved the highest growth among personal loan categories with a net balance of +25.3 percentage points, followed by residential owner-occupied loans (+21.7%), investment housing loans (+17.4%), and other personal loans (+17.3%).

In contrast, auto loans exhibited the weakest growth (+3.5%), while demand for non-real estate investment loans declined (-4.2%). Strong economic conditions, working capital requirements, a favorable investment environment, and increased government spending supported the continued growth in corporate credit demand, with interest rates acting as a positive factor in 2025. For personal loans, rising household incomes, favorable economic conditions, and decreasing interest rates were the main drivers of demand.

Banks maintained a positive lending appetite with a net balance of +15.8 percentage points for companies and +13.4 percentage points for individuals, driven by favorable economic forecasts, increased competition among banks, and improved borrower creditworthiness.

Financial institutions expect credit demand growth to accelerate in Q4 2025, with corporate loan net balance projected to reach +27.7 percentage points, while personal loan demand is expected to reach +28.4 percentage points.

Banks also anticipate an increase in lending appetite to +20.1 percentage points for companies and +15.3 percentage points for individuals, reflecting continued confidence in the strength and future outlook of the UAE economy.

Growth is expected to continue across most sectors, especially in real estate development, retail and wholesale, construction, and manufacturing, along with credit cards, personal loans, and housing loans.