Central Bank of the UAE Unveils AED 6.2 Billion Relief Initiative

The Central Bank of the UAE (CBUAE) has revealed significant details about its extensive relief initiative, designed to bolster the stability and resilience of the country's financial ecosystem.

As stated by the central bank, the overall value of the support measures is AED 6.2 billion. These provisions encompass loan deferments, interest relief, and fee waivers targeted at impacted individuals and businesses.

This initiative has offered support to 65,379 customers throughout the UAE, which includes over 60,000 individuals, 4,335 small and medium enterprises (SMEs), and 485 corporate entities.

The CBUAE indicated that priority assistance was allocated to essential sectors facing economic hurdles. Financial aid was directed towards 173 hospitality firms, 361 transport businesses, and 134 entertainment enterprises under this initiative.

Moreover, the central bank reported a steady expansion within the UAE banking sector from March 1 to May 1. During this timeframe, banking assets saw a 2.1 percent rise, loans increased by 3.2 percent, and deposits grew by 1.9 percent.

Additionally, the monetary base cover ratio stood at an impressive 115.3 percent, indicating robust financial stability in the banking landscape.

The support measures allow qualifying businesses and individuals to defer loan repayments for up to six months without compromising their loan status. The package also features the suspension of interest and banking fees while ensuring continued access to credit for priority sectors.

The CBUAE highlighted that this support program remains available for corporates, SMEs, and individuals affected by economic disruptions, with no minimum loan threshold necessary for eligibility.