UAE banking system expands credit to 10 economic sectors

The UAE’s economic sectors have continued their growth since the start of the current year, according to a digital review of relevant indicators, which encouraged the banking system to fund the activities of various sectors that support the national economy.

Statistics issued by the Central Bank of the UAE show that ten vital economic sectors witnessed considerable growth, reflecting the overall rise of business activity since the start of 2018.

The statistics also show that the construction and real estate sector took the first position among the list of sectors, with its total funding reaching around AED306.6 billion at the start of 2018, an increase of AED8.5 billion compared to the end of 2017.

The real estate sector is a leading sector that supports the national economy, making up 6.4 percent of the country’s non-oil GDP and whose overall value reached AED81.2 billion in 2017, compared to AED79 billion in 2016.

The trade sector, both wholesale and retail, also witnessed considerable activity since the start of 2018, and it received, from banks, around AED157 billion till the end of June, an increase of AED4.5 billion compared to last December.

This sector made up 16.6 percent of the country’s non-oil GDP at the end of 2017, highlighting its key role in supporting the national economy and diversifying the UAE’s income sources.

The situation is similar for the water and electricity sector, which received funding valued at AED1 billion, raising its total funding to AED17.7 billion at the end of June, compared to AED16.7 billion in December 2017.

The statistics also highlight a rise in the contribution of the water and electricity sector to the country’s non-oil GDP, to 4.6 percent in 2017.

UAE banks funded the mining and quarrying sector with around AED800 million during the first six months of the current year, which raised its total funding to AED12.9 billion while the funding total of financial institutions rose to AED129 billion, an increase of AED1.5 billion over the same period.

The banks are also offering personal funding for commercial purposes, totalling AED3.2 billion, raising the total to AED83.2 billion since the end of June.

The UAE is a leading country in diversifying its economic base, as the contributions of its non-oil sectors rose to 77.7 percent in 2017 while those of its oil sectors declined to 22.3 percent.

Follow Emirates 24|7 on Google News.