Arab Today, arab today uae banks boost lending to small businesses
Last Updated : GMT 08:53:10
Arab Today, arab today
Arab Today, arab today

UAE banks boost lending to small businesses

Arab Today, arab today

Arab Today, arab today UAE banks boost lending to small businesses

Dubai - Arabstoday

After racking up losses from real estate and investment loans, banks in the United Arab Emirates are increasing lending to small and medium-sized companies to boost profit as the economy recovers from the credit crisis. Abu Dhabi Commercial Bank, the country\'s third biggest bank by assets, boosted loans to small and medium-sized enterprises, or SMEs, by 25 per cent in the past 12 months, said Colin Fraser, the company\'s Abu Dhabi-based head of wholesale banking. HSBC Holdings Plc\'s UAE unit aims to generate 40 per cent of its commercial banking revenue from SMEs, in coming years, up from 25 per cent today, said Nick Levitt, HSBC\'s head of UAE commercial banking in Dubai. Lenders are trying to tap a wider range of borrowers after property prices plunged more than 60 per cent in the past three years. The slump triggered a doubling in bad loans and forced corporations to restructure debt. Smaller companies are now seeking funds to expand as growth in the region accelerates. Dubai bank stocks climbed 2.7 per cent this year, bucking the ten per cent decline in the Dubai Financial Market General Index. Smaller firms ‘weathered the downturn\' as they \"are well-run businesses, they are conservative and generally owner-managed,\" Fraser said in an August 16 email. Many SMEs, \"are looking to invest into the upturn,\" he said. Economic growth The International Monetary Fund predicts gross domestic product will accelerate to 3.3 per cent in 2011 after expanding 1.4 per cent last year. Bank lending in the UAE expanded 2.4 per cent in the first half of the year after a 1.3 per cent gain in 2010, data from the central bank show. The cost of protecting Dubai\'s five-year debt from default tumbled 237 basis points since reaching a high in February 2010, three months after the state-owned holding company Dubai World asked lenders for a debt standstill, according to data compiled by CMA. The credit default swaps have jumped 76 basis points since Standard & Poor\'s downgraded the US\'s top credit rating on August 5, and traded at 424 yesterday, the highest in the Middle East. Abu Dhabi\'s CDS are at 106 basis points. CMA is owned by CME Group and compiles prices quoted by dealers in the privately negotiated market. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent should a government or company fail to adhere to its debt agreements. Reversing losses Dubai\'s government defines SMEs as companies with as many as 250 employees and sales of as much as Dh250 million. SMEs make up 95 per cent of all Dubai companies, employ 42 per cent of the workforce and contribute 40 per cent to the emirate\'s GDP, according to data released in March. Banks are trying to reverse losses they incurred as they financed Dubai\'s property bubble. Lending jumped by more than 30 per cent annually in the four years to 2008, according to central bank data. Specific provisions for bad loans at UAE banks rose 28 per cent in June from a year ago to Dh47.3 billion, the central bank said. Banks set aside about $500 million to cover losses from Dubai World\'s restructured loans, the IMF said in May.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today uae banks boost lending to small businesses Arab Today, arab today uae banks boost lending to small businesses

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today uae banks boost lending to small businesses Arab Today, arab today uae banks boost lending to small businesses

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday