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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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See why Keir Starmer is resigning as UK Prime Minister

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British Prime Minister Keir Starmer announced on Monday that he will step down as leader of the governing Labour Party and leave office within weeks, less than two years after leading Labour to a landslide election victory.

Starmer said he would remain as caretaker prime minister until Labour selects a new leader.

Click the link below to hear Keir Starmer’s resignation speech:

His departure follows mounting pressure within the party and comes days after Andy Burnham secured a key parliamentary victory, positioning himself as a potential challenger for the party leadership.

Speaking outside 10 Downing Street, an emotional Starmer said he had accepted the view of Labour lawmakers that the party needed new leadership ahead of the next general election.

Starmer’s popularity has fallen sharply since Labour’s decisive victory in July 2024, with critics pointing to sluggish economic growth, cost-of-living pressures and declining public support.

Burnham is now seen as a leading contender to succeed Starmer, although former health secretary Wes Streeting has also indicated he could enter a leadership contest.

Starmer leaves office after a turbulent period marked by domestic challenges but also international recognition for his support of Ukraine and efforts to navigate global crises.

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Dubai sets new rules for public behaviour, celebrations in push to become world’s most civilised city

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Dubai is preparing to introduce official guidelines on public behaviour and celebrations as part of a broader initiative to strengthen its position as the world’s most civilised city.

The announcement was made during the fifth meeting of the Dubai Civility Committee, chaired by Mohammad Abdullah Al Gergawi, Chairman of The Executive Office and Chairman of the Committee.

Among the key initiatives unveiled were the Dubai Civility Guidebook, which will provide a shared framework for conduct in public spaces, and Guidelines for Celebrating Different Occasions, aimed at ensuring that celebrations reflect the values, responsibilities and cultural identity of Dubai’s diverse community.

Public behaviour

Officials said the initiative goes beyond appearances, positioning civility as a comprehensive ecosystem that enhances quality of life, public behaviour, urban aesthetics and the overall experience of residents and visitors.

The committee also reviewed plans for an integrated lighting strategy designed to strengthen Dubai’s visual identity and create greater harmony across the cityscape. In addition, members discussed a comprehensive assessment framework to help establish standards for what Dubai describes as the world’s most civilised urban environment.

Al Gergawi said the emirate has already built a distinctive global model of civility under the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, with people and quality of life remaining at the centre of development efforts.

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New Dh750m Sharjah-Dubai traffic solution plan: What motorists need to know

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For years, motorists travelling between Sharjah and Dubai have faced some of the UAE’s longest daily traffic delays. Now, a major infrastructure programme announced by Sharjah is aiming to change that.

His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, has unveiled a package of road projects worth Dh750 million that will introduce new routes into Dubai, expand key traffic corridors and create a direct underground link beneath one of Sharjah’s busiest intersections.

The flagship project is a tunnel that will pass underneath Al Taawun Roundabout, creating a dedicated route for vehicles heading towards Dubai through Al Nahda Bridge. The tunnel is expected to remove a significant volume of through-traffic from surface roads, helping ease congestion in an area that regularly experiences heavy peak-hour delays.

New corridor

Alongside the tunnel, Sharjah is building Noor Road, a new corridor that will connect Al Orooba Street directly with Dubai. Though the competition date is yet to be announced, Sheikh Dr Sultan said Noor Road is scheduled to open before the end of 2026 and is expected to provide motorists with an additional alternative to existing entry points between the two emirates.

The projects form part of a broader strategy to improve traffic across Sharjah’s eastern and central districts while strengthening links with Dubai. Road upgrades will focus on improving access between residential communities, commercial centres and major highways, creating a more efficient network for both daily commuters and businesses.

Transport challenges

Traffic between Sharjah and Dubai remains one of the UAE’s biggest transport challenges, with thousands of residents crossing emirate borders every day for work and education. Officials believe the new projects will help distribute traffic more evenly across the network, reduce pressure on existing bottlenecks and improve journey reliability.

Authorities say the investment is not solely about reducing congestion. The developments are also intended to support future urban growth and improve connectivity.

While construction timelines for some elements are still being finalised, Noor Road is expected to be operational by the end of next year, marking one of the first major milestones in the programme.

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