UAE Banks Defer Dh13.5 Billion in Loan Repayments, Asset Quality Improves

The Central Bank of the UAE (CBUAE) confirmed that the banking sector achieved the best asset quality ratios at the end of Q2 2026. The non-performing loan (NPL) ratio decreased significantly to 2.8%, and net NPL ratio reached 1.3%, both recording their lowest levels since 2020. The stock of NPLs declined to AED76 billion. This improvement was driven by regulatory and supervisory measures, including intensive inspections and enhanced engagement with industry representatives. The CBUAE's comprehensive support package, introduced in March 2026, enabled repayment deferrals on loans worth AED13.5 billion, benefiting 135,031 bank customers across various segments. Banking assets increased by 12.5%, loans grew by 18.1%, and deposits rose by 14% compared to the same period in 2025.