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UAE credit growth seen rising 8% in 2014 –Emirates NBD

February 27, 2014



Emirates NBD Research report said private sector credit growth to remain

in high single digits this year, and forecasted 8.0 per cent y/y in

December 2014, CPI Financial reported.



The report added, bank loans grew at their fastest pace since Q4 2009,

reaching 7.1 per cent y/y in December 2013, up from 6.0 per cent y/y in

November.



Loans and advances rose just 0.3 per cent m/m however, after a big jump in

November.



The acceleration in credit growth through 2013 (average 5.5 per cent

compared with average 2.7 per cent in 2012), provides further evidence of

the broader economic expansion in the UAE last year, although private

sector credit growth remains lower than in Saudi Arabia and Qatar.



Bank deposits rose AED 5.4 billion to AED 1278.9 billion in December, up

0.4 per cent m/m and 9.5 per cent y/y. For the full year 2013, bank

deposits increased by AED 111.1 billion, compared with AED 98.1 billion in

2012. The central bank said in a statement that residents' deposits were

up 13 per cent y/y, and this would have been a key driver of overall

deposit growth last year.



Overall domestic liquidity continued to improve, with broad money supply

(M2) up 1.9 per cent m/m and 22.5 per cent y/y, the highest annual growth

rate since November 2008. Quasi money (fx and long term dirham deposits)

growth accelerated to 20.2 per cent y/y from 15.6 per cent y/y in

November, while M1 growth slowed to 26.9 per cent y/y in December.

Government

deposits continued to decline m/m through the fourth quarter, which is

reflected in the slower M3 growth over the same period.;

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Source: Mubasher (Saudi Arabic)


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