UAE insurance borrowing up 250% in third quarter of 2005
The UAE economy is rapidly growing, with a significant rise in loans, cash advances and overdrafts, according to the Central Bank of the UAE.
Private sector borrowing grew significantly during the third quarter of 2005, indicating a healthy expansion of non-oil industries.
Financial institution borrowing rose by more than 100 percent, reaching Dh4.445 billion, as opposed to Dh2.883 billion credits in the corresponding period of 2004.
The private sector’s insurance industry sought Dh204 million credits during the same period of 2004, and obtained Dh597 million financial lines in 2005, a 250 percent increase.
Banks credits during the third quarter of 2005 hit an impressive Dh327.456 billion, in comparison to the corresponding period of the previous year, when such credits stood at Dh238.20 billion.
Meanwhile, credit disbursements to non-residents of the UAE reached Dh40.419 billion during the July-September 2005, up from Dh35.457 billion during the same period of 2004.
Additionally, the real estate industry witnessed similarly impressive growth, as mortgage credits rose by more than 50 percent.
During the same period, credits amounting to Dh15.21 billion were disbursed as opposed to Dh10.889 billion the previous year, according to Khaleej Times.
© 2006 Mena Report (www.menareport.com)