More than 135,000 customers benefit from Central Bank measures as banking sector records strongest asset quality levels on record
Abu Dhabi: The Central Bank of the UAE’s (CBUAE) comprehensive support package introduced in March 2026 has enabled repayment deferrals on loans worth AED13.5 billion, benefiting 135,031 bank customers across the country.
The measure forms part of the CBUAE’s prudential approach to strengthening the resilience of the banking sector and proactively managing asset quality.
According to data released by the Central Bank, deferred loans were distributed across customer segments, with AED9.1 billion allocated to large corporates, AED2.4 billion to small and medium-sized enterprises (SMEs), and AED2 billion to individual customers.
The number of beneficiaries included 127,753 individuals, 6,198 SMEs and 1,080 large corporates.
Banking assets increased by 12.5 percent
The data also highlighted the continued strength of the UAE banking sector. As of 30 June 2026, banking assets increased by 12.5 percent, loans grew by 18.1 percent and deposits rose by 14 percent compared with the same period in 2025.
In a related development, the UAE banking sector recorded its strongest asset quality levels by the end of the second quarter of 2026, supported by a significant decline in non-performing loans.
The non-performing loan ratio fell to 2.8 percent, its lowest level on record, compared with 8.2 percent in 2020, representing a decline of 5.4 percentage points.
The net non-performing loan ratio also reached a record low of 1.3 percent, down from 3.6 percent in 2020.
The stock of non-performing loans declined to AED76 billion by the end of the second quarter of 2026, compared with AED84 billion in the first quarter of 2026 and AED142 billion in 2020.
The CBUAE said the improvement was driven by a range of regulatory and supervisory measures, including intensive inspections, comprehensive asset quality reviews, enhanced engagement with industry representatives and risk officers, and the implementation of strengthened credit risk management standards.
The measures also included the development of guidelines for the write-off and recovery of non-performing loans in line with international best practices.
