Recent data from the central bank reveals that banks in Dubai have led the sector in personal financing, capturing 48% of the total personal loans disbursed across the entire nation, with a cumulative total of 266 billion dirhams by the end of October 2025.
The cumulative amount of personal loans extended by Dubai’s banks grew by 21.5% year-on-year, as the 32 banks operating in the emirate issued approximately 46 billion dirhams in new personal loans between October 2024 and October 2025.
Personal loans from financial institutions in the UAE increased by 77 billion dirhams over one year, as banks expanded their lending to meet rising demand, coinciding with a active market period characterized by eased lending restrictions and significantly lower interest rates.
As per the latest indicators from the central bank, the total balance of individual loans reached 558 billion dirhams by the end of October 2025, marking a 16% year-on-year increase from the 481 billion dirhams recorded in the same period of 2024.
Banking data shows a rapid growth in personal loans during 2025 compared to the previous year, with the first ten months of the previous year alone accounting for around 60 billion dirhams in new personal loans, an increase of 3 billion dirhams compared to the new personal loans issued by UAE banks in the same timeframe of 2024.
Furthermore, the central bank’s data indicates that Islamic personal loans constituted 39.5% of the total individual loans, amounting to 220 billion dirhams by October of the previous year. Islamic banks were notably more active in terms of personal loan issuance compared to commercial banks, with the total balance of individual loans from Islamic institutions seeing a 19% annual increase, as they granted 37 billion dirhams in new loans over the year. Additionally, the cumulative growth in this segment exceeded 17% during the first ten months of 2025.