UAE personal debts up 7.5 percent in Q2Staff Writer | August 18, 2016
The total amount of personal loans in the United Arab Emirates (UAE) climbed during the second quarter of 2016 by 7.5 percent to $117.16 billion, up from $109 billion year on year.
Emirates The average resident is $11,600 in debt
The loan-to-deposit ratio has reached 103.4 percent in the UAE, Alp Eke, senior economist at NBAD, was quoted as saying.
In addition, banks in the UAE suffer losses from bad loans as insolvent business owners flee the country without settling their outstanding debts.
Small business owners who fled the country in 2015 left a total amount of unpaid debts worth $1.4 billion, UAE Banks Federation Chairman Abdulaziz Al-Ghurair said.
Due to the absence of a bankruptcy law, which is poised to be issued in the UAE by this year, unpaid debt is regarded a criminal offense under the Gulf state's law. ■