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UAE banks are expected to achieve net income growth between 7-8% annually in 2024 and 2025, on the back of robust borrowing demand from businesses, Al Bayan reports, citing a Bloomberg Intelligence report. Loans from local lenders are projected to grow 11% in 2024, and at least 9% in 2025, underpinned by active project pipelines across the country.
A healthy pipeline: The UAE has approximately USD 358 bn in projects underway over the next five years, fueling an anticipated 6-8% annual wholesale loan growth. Major initiatives include Etihad Rail, metro developments, and water infrastructure projects.
Large-scale real estate developments in Dubai make up a bulk of this pipeline, with developers preparing to deliver 182k units between 2025 and 2026. This growth comes on the back of rising home prices in the emirate, which increased 19.9% y-o-y in 3Q 2024 due to high demand and limited supply. Meanwhile, Knight Frank projects an additional 8% rise in real estate prices in 2025.
