UAE, Saudi, and Qatari Banks Boost Loans with Lower Interest Rates: Why?
Banks across the UAE, Saudi Arabia, and Qatar are ramping up their lending activities while reducing interest rates, following a trend of falling rates in the Gulf region.
Major institutions such as Emirates NBD, First Abu Dhabi Bank (FAB), and Saudi Arabia’s Al Rajhi Bank reported significant loan growth in the second quarter of 2025, with expectations for continued increases.
For more updates, connect with us on WhatsApp!
Data from S&P Global Market Intelligence indicates that Al Rajhi Bank led the charge with a 19.3% rise in lending, nearly tripling its growth from the previous year.
FAB also raised its full-year loan growth guidance after posting a 10.7% increase, while Emirates NBD reported a 14.3% rise in loans during the same period.
Qatar National Bank (QNB) saw its loan book expand by 9.4%, prompting an upward revision of its growth forecast.
Analysts anticipate that loan growth will remain strong throughout the year as central banks in the region are expected to align with anticipated rate cuts from the US Federal Reserve.
As lending increases, banks are also experiencing a rise in net interest income (NII). QNB reported a 10% year-on-year increase in NII, while Al Rajhi Bank’s NII surged by 25%.
Despite some variations in profits, the overall outlook for the banking sector in the GCC remains positive, with improved access to credit and competitive borrowing costs for residents anticipated in the coming months.
Follow us on Facebook for the latest updates!
Read more
- Saudi Arabia Imposes Strict Rules on Central Kitchens
- UAE to Recruit 400 Bangladeshi Drivers for Dubai Taxi Corporation
- Grand Mall Hypermarket Unveils their Budget Deal Across Huge range of Products in Qatar
- Safari Unveils Limited-Time Huge Discount on Smartphone & Accessories in Qatar
- Qatar Traffic Police Extends Grace Period for Expired Vehicle Registrations
Gulf News
