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UAE’s business loan demand grows over economic recovery

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Business loan demand has surged in the United Arab Emirates during the third quarter, reflecting confidence of the corporate sector in the economic recovery, showed the data of Credit Sentiment Survey.

According to the survey of senior credit officers across the banking sector by the Central Bank of UAE (CBUAE), the demand is at its highest peak since 2014.

The survey shows that the UAE’s credit sentiment results for the September quarter points to increased demand for credit, from both businesses and households, coupled with a softening of credit standards for the household sector.

For the September quarter, survey results suggested that demand for business loans surged further with strongest increase since 2014.

According to survey results, 47.5 per cent of respondents reported no change, 42.5 per cent reported an increase in demand, while 10 per cent of respondents reported a decrease in demand.

Looking forward, expectations for business and personal loan demand along with changes in credit standards bode well for credit growth in the months ahead.

The UAE’s economic recovery is fuelling a positive outlook and higher expectations for business loan demand in the months ahead.

Data showed credit demand from corporates and small businesses reported solid increase in demand, which continued to strengthen across all emirates.

According to the report, increased demand was widespread among the different loan categories, comprising large firms, domestic firms, government-related entities, and small and medium enterprises, and was primarily driven by customers’ sales, the property market outlook, interest rates, customers’ fixed asset investments, and seasonal influences.

Looking ahead to the December quarter, business loan demand is expected to remain strong across all emirates, although survey respondents expect a minor net tightening of credit standards.

The survey found the main drivers of increased demand were the housing market outlook, change in income, financial market outlook, and interest rates. The outlook for the December quarter remains optimistic with survey respondents expecting a strong increase in credit demand and a net easing of credit standards.

The results of the third quarter credit sentiment survey revealed contrasting trends in credit standards applied by banks to business and consumer lending.

Data showed a tightening of terms and conditions for loans to businesses across all categories in the September quarter. Survey respondents reported the highest degree of tightening for collateralization requirements, as opposed to a lower degree of tightening for spread of loan rates over cost of funds. Over the next three months, survey respondents expect credit terms and conditions to tighten further, mainly with respect to premiums charged on riskier loans and collateralization requirements

Looking forward, survey respondents expect the factors driving the change in credit standards to remain the same as those reported in the September quarter.

In the consumer credit segment, survey respondents expect a continued net easing of credit standards for personal loans in the December quarter. Credit standards for personal loans are expected to ease across all categories, the survey found.

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UAE warns drivers: Fines up to Dh2,000, 23 black points for risky driving during heavy rains

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Authorities across the UAE have issued a fresh warning to motorists, urging them to exercise extreme caution during ongoing unstable weather conditions. The reminder comes as part of efforts to enhance road safety and prevent accidents in high-risk areas such as valleys, flood zones, and near dams.

The UAE authorities emphasised that strict penalties are in place for violations during rainfall. Motorists found driving near valleys or flood-prone areas could face a fine of Dh1,000 along with 6 black points on their license.

More severe penalties apply to those who deliberately drive into flooded valleys, regardless of the water level or perceived danger. Offenders risk fines of up to Dh2,000, 23 black points, and a 60-day vehicle impoundment.

Additionally, authorities warned against obstructing emergency responders or traffic officials during adverse weather situations. Such actions could result in a Dh1,000 fine, 4 black points, and vehicle impoundment for up to 60 days.

Officials continue to urge drivers to prioritise safety, follow official advisories, and avoid unnecessary travel during severe weather conditions to prevent accidents and ensure smooth emergency response operations.


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Rains in UAE: Free public parking extended in Sharjah amid unstable weather

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In response to ongoing unstable weather conditions, Sharjah City Municipality has announced an extension of its public parking fee exemption across the emirate. The decision, effective from Monday, March 23, will remain in place until further notice, offering temporary relief to residents and visitors.

The waiver applies to all standard public parking zones, including those that typically require payment on weekdays and official holidays. These areas are identifiable by blue informational signage installed throughout the city.

However, authorities clarified that smart parking yards are excluded from the exemption and will continue to operate under regular paid parking rules.

Officials have urged the public to stay informed through official communication channels, including the municipality’s social media platforms and helpline services, as weather conditions continue to evolve.

The move reflects Sharjah’s ongoing efforts to support public safety and convenience during periods of disruption, ensuring smoother mobility across the city.


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Look: How Dubai’s RTA works round the clock to keep roads safe amid unstable weather

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Behind every safe journey in Dubai, a massive coordinated effort is underway. Safety during rainy conditions remains a top priority, says the Roads and Transport Authority (RTA).

The authority has been operating 24/7 on the ground during the recent spell of unstable weather, working to manage traffic flow, clear water accumulation and provide real-time alerts to motorists across the city.

RTA teams are closely monitoring conditions through a central command system in coordination with strategic partners, ensuring quick response times and minimal disruption on key roads.

Motorists have been urged to follow safety guidelines and drive cautiously during rainy conditions.

At the same time, Dubai Municipality has activated its full emergency response system, deploying more than 2,800 personnel, including engineers, supervisors and field workers, to tackle waterlogging and weather-related incidents.

The large-scale operation includes hundreds of pumps, tankers and heavy vehicles working continuously to drain flooded streets, particularly on major roads and previously affected areas. Ongoing maintenance of drainage networks is also being carried out to boost capacity and reduce water pooling.

Together, these efforts reflect a city-wide response aimed at ensuring residents remain safe and traffic continues to move smoothly despite challenging weather conditions.

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