Personal loans from banks operating in the UAE saw an increase of 73.4 billion dirhams in 2025, reflecting a significant expansion in lending to individuals to meet growing demand.
According to recent indicators from the Central Bank, the cumulative total of personal loans, which includes both residents and non-residents, surpassed 666 billion dirhams by the end of 2025. This marks an annual growth of 12.3% compared to the total of 592.6 billion dirhams recorded at the end of 2024.
The new personal loans obtained by residents last year reached 50.7 billion dirhams, raising the cumulative total from 607 billion dirhams at the end of 2024 to 657.7 billion dirhams by the end of 2025, reflecting an annual increase of 8.3%.
Additionally, the cumulative total of personal loans for non-residents increased by an additional 1.3 billion dirhams, with an annual growth rate of 18%, leading to a total of 8.5 billion dirhams by the end of 2025.
The reasons for borrowing varied significantly, with consumer loans accounting for nearly 89% of the total personal loans from UAE banks, amounting to a cumulative total of 590.6 billion dirhams. Meanwhile, personal loans for business establishment represented 11%, totaling 75.4 billion dirhams.
The Central Bank’s data indicated that Islamic loans constituted 39.5% of the overall balance of individual loans, totaling 225 billion dirhams last year. Islamic banks demonstrated more activity compared to personal loans issued by commercial banks, registering a 20% annual growth, with 38 billion dirhams in new loans granted throughout 2025.
Moreover, banks in Dubai led the local banking sector in providing funding to individuals, with a total exceeding 272 billion dirhams by the end of 2025. The total financing provided by Dubai’s banks increased by approximately 20.8% annually, with 32 banks in the emirate issuing around 47 billion dirhams in new personal loans during 2025.