Auto loans down 7.6 pct in 2019, as consumers tend to optimise spending

Auto loans declined by 7.6 percent while property financing increased 2.9 percent during 2019, according to the statistics of the Central Bank of the United Arab Emirates.

The apex bank’s figures indicated a drop of 2.3 pct in retail loans allocated to households in a sign reflective of an increased tendency toward spend optimization among individuals.

Standing at AED333 bn, retail loans by residents accounted for around 20 percent of total banking lending in 2019, or around 30 percent of the non-oil GDP.

In the meantime, the CBUAE’s Financial Report show residents’ deposits outweighed their loan balance in UAE banks, increasing 8 percent to AED452 bn, while non-resident deposits declined 1.3 percent to AED25 bn in the reference year.