SMEs’ problem loans provided for

Year-to-date bank results broadly confirm that banks have either fully provided for the problem loans linked to the small and medium enterprise (SME) sector and or deleveraged substantially from their exposure to troubled segments of business.

With economic growth starting to pick up again on the back of higher oil prices and production, as well as increased government spending in Abu Dhabi and higher infrastructure spending in Dubai in preparation for Expo 2020, banks are seeing a revival in credit demand from corporates, government and government-related entities (GREs), overall retail loan growth remains anaemic.