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FINANCIAL NEWS
UAE targets 4% growth this year
14 Oct 2010
(MENAFN) The Governor of the UAE Central Bank said that the government is planning to unveil new banking regulations to contain credit growth and streamline the mortgage sector, Khaleej Times reported.
The governor described a projected economic growth of three to four percent for the UAE in 2010 as ”reasonable”, and said one of the goals of the Central Bank was to maintain credit growth at a reasonable rate.
UAE banks’ credit portfolio grew at the rates of 37.7 percent in 2005, 36.1 percent in 2006, 34.3 percent in 2007 and during the crisis year at 41.1 percent. When the crisis hit, banks stopped extending credit to customers.
The UAE Ministry of Economy has forecast a gross domestic product, or GDP, growth of 2.0 to 3.2 percent in 2010 based on oil price projections of $75 to $85 a barrel.
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