UAE banks provide AED13.5 billion loan repayment relief to over 135,000 customers

UAE banks have deferred AED13.5 billion in loan repayments for 135,031 customers as part of a Central Bank support package. This initiative is designed to enhance financial resilience amid challenging economic conditions. The deferral underscores the banking sector's proactive approach to supporting its clientele during uncertain times.

The Central Bank of the UAE introduced this comprehensive support package in March 2026, coinciding with a significant decline in the non-performing loan ratio. As of June 2026, the banking sector reported a record low non-performing loan ratio of 2.8%, indicating improved asset quality across the board.

The introduction of the support package by the Central Bank is a strategic move aimed at bolstering the UAE banking sector's stability. With the non-performing loan ratio decreasing to a record low of 2.8%, the sector is demonstrating resilience and a commitment to financial health. The banking sector's assets have also increased by 12.5% as of June 2026, further highlighting its recovery trajectory.

This initiative is particularly significant for large corporates, with AED9.1 billion of the deferred loans allocated to them. The overall decrease in non-performing loans to AED76 billion by the end of Q2 2026 reflects a positive trend that stakeholders should closely monitor.

The ongoing improvements in the UAE banking sector suggest a robust recovery and potential for future growth. Stakeholders should keep an eye on the impact of this support package on the overall economic recovery in the UAE. Additionally, further regulatory measures from the Central Bank may emerge to maintain asset quality and support continued stability.

As the banking sector shows signs of recovery, the implications for economic growth and stability in the coming months are promising. This proactive approach by UAE banks could pave the way for a more resilient financial landscape.