The latest data from the Central Bank of the UAE (CBUAE) shows a clear and encouraging trend: credit growth to the private sector is accelerating. In March 2025, gross credit extended by UAE banks to the private sector rose by 8.3% year-on-year, with national banks leading the charge.
This is a positive signal for SMEs and mid-market businesses, which form the core of the UAE’s non-oil economy.
Key Highlights from the CBUAE Report
- Total Gross Credit by UAE banks reached AED 2.24 trillion, up 9.4% from March 2024
- Private Sector Lending hit AED 1.27 trillion, growing 8.3% year-on-year
- Business & Industrial Credit rose 3.5% year-on-year
- Foreign Bank Lending to the private sector also increased, indicating rising cross-border confidence
- Deposits by the private sector grew 15%, showing liquidity is improving across businesses
What Does This Mean for Business Owners?
If you’re running an SME or planning to scale your business, this trend should catch your attention. Banks—especially national banks—are opening up to more lending, and the cost of funds remains competitive.Risk appetite is gradually returning, especially for businesses that are well-structured, financially transparent, and professionally advised.
Sector Spotlight: Industrial & Trade Finance
The Business and Industrial sector saw AED 790 billion in credit allocation—a 3.5% year-on-year rise. While not massive, it reflects steady recovery in sectors like:
- Construction and contracting
- Food production and processing
- Import-export and logistics
- Healthcare and manufacturing
These are sectors where we actively support clients in raising structured debt and trade finance.
Foreign Credit and Opportunity for Non-Resident Borrowers
Interestingly, credit to non-residents grew a significant 37.3% year-on-year, indicating growing investor and lender confidence in UAE-based offshore structures, DIFC entities, and non-resident business borrowers.
What Can You Do Now?
If you’re an SME / Corporate, trading company, or growing enterprise, now is the time to:
- Reassess your capital needs
- Strengthen your financial reporting
- Prepare a solid pitch for working capital or expansion loans
- Explore trade finance or revenue-based options if traditional term loans aren’t a fit
At Synergy Fin. Consulting, we assist clients with end-to-end fundraising—whether you’re raising AED 1 million or AED 100 million. From structuring proposals to presenting to the right lender or investor, our team ensures you are funding-ready in every respect.
Talk to us and let’s make your growth fundable.
Contact us: cs@consultsynergy.ae
