UAE Bank Credit Rise : What the Lending Growth Means for Businesses Seeking Funding
Manoj Sureka is the CEO & Managing Partner of Synergy Fin Consulting and a Chartered Accountant with extensive experience in UAE banking and corporate finance. Manoj has built a strong reputation for his strategic foresight and ability to foster sustainable business growth. Formerly Head of Commercial Banking at RAKBANK, he advises businesses on debt and equity fundraising, working capital, and strategic transactions.
At Synergy Fin Consulting, the firm provides end-to-end fundraising advisory services through private equity, debt, and trade finance solutions. Their clientele includes SMEs and corporates seeking capital through banks, financial institutions, sovereign wealth funds, and other institutional investors. Synergy also offers specialised advisory services in mergers and acquisitions and joint ventures.
Q1: How large is the UAE banking sector today?
The Central Bank reports that the combined assets of banks operating in the UAE stood at AED 5.669 trillion at the end of July 2026, compared with AED 5.024 trillion in July 2025. That is an increase of approximately 12.8% over the same month a year earlier.
Q2: What’s the banking credit situation?
Banks’ outstanding gross credit reached AED 2.799 trillion at the end of July 2026, an increase of 18.3% from July 2025.
Q3: How much of that lending is going to businesses?
The Central Bank reports AED 1.573 trillion in credit to the private sector as of July 2026, up from AED 1.431 trillion in July 2025. The private-sector figure includes both companies and individuals.
Q4: Does the growth in bank deposits make funding easier to obtain?
Bank deposits reached AED 3.510 trillion at the end of July, up 13.9% from a year earlier. Deposits are an important source of funding for banks, but their growth does not translate automatically into loan approvals. A lender still looks at the borrower’s financial performance, cash flow, existing obligations and the purpose of the facility.
Q5: Why might a profitable company still struggle to secure finance?
Profitability is only part of the picture. A company may have healthy sales yet face a long gap between paying suppliers and collecting from customers. If it asks for a facility that does not match that cash cycle, repayment may look difficult even when the business is profitable.
Q6: What should a company prepare before approaching a lender?
Start with a clear explanation of how much is needed, what it will fund and when the business expects cash to come back. Support that explanation with current financial statements, bank statements, contracts or purchase orders where relevant, a forecast of cash inflows and outflows, and a schedule of existing debt.
Q7: Should companies look beyond conventional bank loans?
Yes, where the transaction calls for it. An overdraft may cover short-term working capital; a letter of credit or guarantee may support trade; receivables finance may release cash tied up in invoices; and a term loan may fund a longer-lived asset. For some growth plans, equity or a joint venture may be more suitable than taking on additional debt. Businesses should compare the total cost, security requirements, repayment terms and effect on ownership or control.
Q8: Does rising bank credit mean borrowing costs are falling?
Not necessarily. Credit growth tells us that the amount of lending has increased; it does not tell us what an individual business will pay. Pricing depends on the facility, its term and security, and the lender’s assessment of the borrower. Companies should compare the full cost of funding, including fees, rather than focusing only on the quoted interest rate.
Q9: How can an SME improve its chances of getting approved?
Show the lender a clear link between the funding request and the business’s cash cycle. Keep financial statements and bank records current, explain any unusual transactions or existing debt, and prepare a realistic cash flow forecast. If the facility will fund a contract or purchase order, provide the supporting documents and show when payment is expected.
