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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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Dubai issues new law on sharing accommodation, fines up to Dh1 million for violations

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Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (4) of 2026 to regulate the management and occupancy of shared housing in Dubai.

The new law applies across Dubai’s private development zones and free zones and sets clear rules for property owners, authorised operators, and tenants involved in shared housing arrangements.

What the law aims to do

The legislation is designed to organise shared housing in the emirate and address issues such as overcrowding and informal accommodation. The law aims to:

  • Protect the rights of property owners and residents
  • Ensure safe and healthy living conditions
  • Prevent overcrowding and illegal housing practices
  • Address building and land-use violations
  • Promote fair rental practices
  • Support the stability and appearance of Dubai’s real estate market

Permit required for shared housing

Under the law, no individual or entity may allocate a property unit for shared housing without obtaining an official permit.

Permits will be issued and renewed according to rules set by Dubai Municipality, in coordination with Dubai Land Department and other authorities.

Properties must meet specific technical and safety requirements, including:

  • Maximum occupancy limits
  • Minimum space per resident
  • Adequate shared facilities
  • Compliance with building, health, fire, sanitation, security, and electrical standards

Permit validity and renewal

  • Permits are valid for one year and may be renewed for similar periods.
  • At the owner’s request, a two-year permit may be issued.
  • Renewal applications must be submitted at least 30 days before expiry.

Leasing rules

The law states that only the property owner or an authorised establishment can lease a shared housing unit.

Tenants or other parties are not allowed to sublease any part of the unit, ensuring better oversight and compliance with regulations.

Heavy fines for violations

Violating the law can result in fines ranging from Dh500 to Dh500,000.

If the same violation is repeated within one year, the penalty will be doubled, up to a maximum of AED1 million.

Authorities may also impose additional measures, including:

  • Suspension of activity for up to six months
  • Cancellation of the permit
  • Revocation of the commercial licence
  • Disconnection of public utilities
  • Eviction orders for non-compliant units

Oversight and implementation

Dubai Municipality will set detailed conditions for shared housing, including maximum occupancy levels, required space per resident, and necessary facilities. The authority will also determine which areas in Dubai are permitted for shared housing, based on urban planning, population density, infrastructure capacity, and neighbourhood characteristics.

The law applies to companies licensed to manage or lease properties on behalf of owners, including those operating in special development zones and free zones. However, collective labour accommodation is excluded from its scope.

When the law takes effect

The law will come into force 180 days after its publication in the Official Gazette, and any conflicting provisions in other legislation will be annulled.

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Abu Dhabi warns public about fraudulent SMS and iMessage phishing scams

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Abu Dhabi Customs has issued a warning to the public about fraudulent SMS and iMessage messages circulating that impersonate the authority and well-known shipping companies in an attempt to steal personal information.

According to the authority, scammers are sending messages that appear legitimate, often claiming there is a shipment issue, customs fee, or a request to update delivery details. These messages usually include malicious links designed to trick recipients into providing sensitive information such as personal data, banking details, or login credentials.

Abu Dhabi Customs urged the public not to interact with these messages or open any links, stressing that fraudsters sometimes use phone numbers or names that falsely suggest they are associated with official entities to gain people’s trust.

The authority advised customers to avoid sharing personal information with unknown parties and to rely only on official channels to access services, track shipments, or obtain customs-related information.

Abu Dhabi Customs also reaffirmed its commitment to maintaining high cybersecurity standards and protecting customer data, noting that it works with relevant authorities to monitor and address digital fraud attempts.

Members of the public are encouraged to report any suspicious messages impersonating Abu Dhabi Customs through official channels, helping authorities raise community awareness and reduce phishing attempts.

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Dubai: 24/7 truck movement permit extended until March 22

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Dubai’s Roads and Transport Authority (RTA), in coordination with Dubai Police, has extended the 24-hour truck movement permit across the emirate until the evening of Sunday, March 22.

The move allows trucks to use most roads in Dubai around the clock to support the logistics sector and ensure smooth supply chain operations across the city.

In a statement, the RTA said the decision aims to facilitate the movement of goods and maintain efficient delivery services, particularly during periods of increased logistical demand.

However, the authority clarified that the Airport Tunnel and Al Shindagha Tunnel are excluded from the decision. Traffic restrictions will remain in place in these locations to ensure road safety and maintain smooth traffic flow.

Officials said the temporary measure is intended to help transport operators maintain efficient distribution networks while minimising disruptions across the emirate’s road network.

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