UAE Banks Defer Dh13.5 Billion in Loan Repayments

Jul 30, 2026

72 min

Jul 30, 2026 13:31

UAE banks deferred Dh13.5b in loan repayments under CBUAE support package

## CBUAE Support Package Aids Over 135,000 Customers

Banks in the UAE have deferred Dh13.5 billion in loan repayments for more than 135,000 customers as part of a support package from the Central Bank of the UAE (CBUAE). This initiative, launched in March 2026, aims to assist businesses and individuals facing financial challenges due to regional disruptions.

## Breakdown of Deferred Loans

The largest portion of deferred loans, totaling Dh9.1 billion, was allocated to large corporations. Small and medium-sized enterprises (SMEs) received Dh2.4 billion, while individual borrowers accounted for Dh2 billion. In terms of customer numbers, individuals made up the majority of beneficiaries, with 127,753 individuals, 6,198 SMEs, and 1,080 large corporates receiving relief.

## Banking Sector Growth and Asset Quality

The UAE banking sector has shown resilience, with total banking assets increasing by 12.5% year-on-year as of June 30, 2026. Loans grew by 18.1%, and customer deposits rose by 14% compared to the previous year. The sector also achieved a record low in non-performing loans (NPLs), with the ratio dropping to 2.8% by the end of the second quarter of 2026, down from 8.2% in 2020.

## Measures to Improve Financial Stability

The CBUAE attributes the improvement in asset quality to various regulatory and supervisory measures. These include enhanced risk management practices, stricter credit risk regulations, and guidelines for the recovery of non-performing loans. These efforts have helped reduce bad debts and strengthen the financial system's overall resilience.

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