17:00 - 20.05.2025

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May 20, Fineko/abc.az. The UAE is seeing a significant increase in lending, which is leading to essential growth in property prices, especially in Dubai.

ABC.AZ informs that this price spike created the risk of market correction, a situation that had previously raised concerns about the banking system and the debt burden in the UAE. Despite this, there is evidence that banks and government-affiliated organizations are well prepared for any potential downturn in the real estate sector.

After the pandemic, demand for loans in the UAE has recovered quite actively. Private sector lending growth has averaged about 6% year-on-year since the beginning of 2022.

Over the past 18 months, this growth rate has accelerated to nearly 10% year-on-year, which is the fastest rate in more than a decade. This growth rate exceeds growth in lending in the rest of the Persian Gulf countries.