Dubai: Credit growth in the UAE strengthened to 0.5 per cent month on month in February, the fastest pace since September 2016, according to the monthly data from the Central Bank of UAE.
The stronger monthly credit growth in February was largely driven by the government related entities (GRE) segment, which was up 1.9 per cent compared to January following two consecutive months of contraction. Despite the month-on-month growth, annual loan growth decelerated further to 5.4 per cent year on year last month, reflecting the overall soft pace of credit expansion since the fourth quarter of 2016.
“The February data could suggest a tentative pickup in GRE activity as organisations start implementing their 2017 budgets, though we would need to see an…
