UAE

CBUAE: UAE banks defer AED 13.5bn, NPL at record 2.8%

The Central Bank of the UAE has summed up the outcome of its March 2026 support package: 135,031 customers — 127,753 individuals, 6,198 SMEs and 1,080 large corporates — received loan-repayment deferrals totalling AED 13.5 billion. At the same time the non-performing loan ratio of the banking system has fallen to a historic low of 2.8%. We break down what stands behind these numbers, what they say about the credit discipline of UAE banks and what is practically changing for SMEs and corporate clients that work through UAE banks.

Marsel ShadmanovCEO & Partner, Garant Business Consultancy · UAE banking, structuring & tax

30 July 20267 min read

On 30 July 2026 the Central Bank of the UAE (CBUAE, centralbank.ae) published the outcome of its March 2026 banking-sector support package: AED 13.5 billion of loan repayments deferred for 135,031 customers — 127,753 individuals, 6,198 small and medium-sized enterprises and 1,080 large corporates; deferred amounts by category — AED 9.1 billion for large corporates, AED 2.4 billion for SMEs and AED 2 billion for individuals; the non-performing loan (NPL) ratio of the UAE banking system fell to a record low of 2.8% in Q2 2026 versus 8.2% in 2020; NPL stock declined to AED 76 billion (from AED 84 billion in Q1 2026 and AED 142 billion in 2020); net NPL ratio dropped to 1.3%; banking-sector assets grew 12.5% year-on-year, loans 18.1% and deposits 14% as of 30 June 2026

Common questions on this topic

What is the CBUAE support package and when was it launched?

This refers to the Central Bank of the UAE's support package (a Targeted Support Scheme in CBUAE terminology) launched in March 2026 to ease the repayment burden on borrowers of UAE banks. Under this tool, UAE commercial banks — in agreement with CBUAE — could grant customers deferrals on scheduled principal and/or interest payments for an agreed period without restructuring the underlying loan and without penalty charges. According to the results published by CBUAE in late July 2026, the package accounted for AED 13.5 billion of deferred loan repayments across 127,753 individuals, 6,198 small and medium-sized enterprises and 1,080 large corporates — 135,031 customers in total. Deferred amounts by category: AED 9.1 billion for large corporates, AED 2.4 billion for SMEs and AED 2 billion for individuals.

What does an NPL ratio of 2.8% mean and why is it important?

NPL ratio (non-performing loan ratio) is the share of problem loans in the total portfolio of banks. According to CBUAE, by the end of Q2 2026 this indicator across the UAE banking system fell to 2.8% — a record low; for comparison, in 2020 it stood at 8.2%. The net NPL ratio (after provisions) is 1.3% versus 3.6% in 2020. The absolute NPL stock has fallen to AED 76 billion, compared with AED 84 billion in Q1 2026 and AED 142 billion in 2020. In practical terms this means UAE banks now have one of the healthiest credit portfolios in recent years: banks take fewer provisions, have more capital available for new lending and the cost of risk for corporate borrowers is lower.

What do these figures mean for SMEs and corporate clients of UAE banks?

Three practical consequences. First: the UAE SME lending market is actively expanding — 6,198 SME borrowers were among the recipients of the deferrals, and total sector lending grew +18.1% year-on-year as of 30 June 2026 (faster than asset growth of +12.5% and deposit growth of +14%). This signals that banks are willing to take on risk and more actively approve corporate and SME applications. Second: a record low NPL ratio of 2.8% shows that banks are becoming more flexible on restructuring rather than pushing problem cases straight into default — this gives good-faith borrowers a stronger negotiating position. Third: with growing bank liquidity (deposits +14% YoY) limits are rising and approval is accelerating on standard corporate products — working capital, trade finance, equipment leasing.

What happened to my existing loans with UAE banks — could they have been deferred automatically?

No. Deferrals under the CBUAE support package were not automatic. The tool worked on an application basis: the borrower (an individual, SME or corporate) approached their creditor bank, the bank assessed the situation and — in agreement with CBUAE — granted a deferral on principal and/or interest for an agreed period. If you did not apply, no changes were made to your payment schedule. If your business has an active loan with a UAE bank and payment pressure is being felt, it makes sense to approach the bank directly to ask about available restructuring tools — against the backdrop of low NPL, in 2026 banks are more receptive to such requests.

How do these CBUAE numbers connect to a corporate account and credit limits for my company in the UAE?

A healthy banking system with a record low NPL ratio of 2.8% and strong liquidity growth (deposits +14% YoY, assets +12.5% YoY) is the environment in which UAE banks are more willing to onboard corporate clients and raise limits on credit and trade products. For a company opening a corporate account in the UAE this means two things. First — banks continue to scrutinise KYC, but sound business documents, a clean source of funds and a clear operating model today more often lead to approval than to refusal. Second — access to additional banking products (card limit, overdraft, trade finance, leasing) becomes a realistic option within the first 6–12 months of the relationship if the company demonstrates stable turnover. Practical steps for opening a corporate account in 2026 are covered in a dedicated Garant guide.

The Central Bank of the UAE (CBUAE) has summed up the outcome of its March 2026 banking-sector support package: AED 13.5 billion of loan repayments deferred for 135,031 customers — 127,753 individuals, 6,198 small and medium-sized enterprises and 1,080 large corporates. At the same time the non-performing loan (NPL ratio) of the UAE banking system fell to a record low 2.8% in Q2 2026, versus 8.2% in 2020. The figures were published on 30 July 2026.

What happened

In March 2026 CBUAE launched a support package for the banking sector — a Targeted Support Scheme that allowed UAE commercial banks, in agreement with the regulator, to grant customers deferrals on scheduled principal and/or interest payments without restructuring the loan and without penalty charges. According to the outcome released in late July, the tool covered a loan portfolio worth AED 13.5 billion in total.

Deferrals by borrower category:

Large corporates — AED 9.1 billion (1,080 clients). Roughly two thirds of all deferred repayments went to this segment.
Small and medium-sized enterprises (SMEs) — AED 2.4 billion (6,198 clients). The most numerous business category of recipients.
Individuals — AED 2 billion (127,753 clients). The average deferral per client is smallest here, but the reach across borrowers is the widest.

The package was application-based: banks reviewed customer requests and, in agreement with CBUAE, granted deferrals for individually agreed periods. There were no automatic "default" deferrals.

NPL ratio 2.8% — a record for the UAE banking system

Alongside the outcome of the support package, CBUAE released the headline financial health indicators of the banking sector. The key figure is an NPL ratio of 2.8% at the end of Q2 2026 — a historic low: for comparison, in 2020 the ratio stood at 8.2%. The net NPL ratio (non-performing loans net of provisions) fell to 1.3%, versus 3.6% in 2020.

The absolute NPL stock is also shrinking:

AED 76 billion — NPL stock as of end-Q2 2026.
AED 84 billion — same indicator as of end-Q1 2026.
AED 142 billion — the 2020 level.

Over two and a half years the UAE banking system has almost halved its absolute stock of problem loans, even as the credit portfolio itself has been expanding actively.

Banking sector growing at double-digit rates

Year-on-year growth of the UAE banking sector as of 30 June 2026 is double-digit on all three headline metrics:

Assets — +12.5% YoY. Bank balance sheets are expanding faster than the regional average.
Loans — +18.1% YoY. A key signal: banks are willing to take on risk and are ramping up lending to corporates, SMEs and individuals faster than assets grow overall.
Deposits — +14% YoY. Liquidity inflows from business and households remain robust.

The combination of a low NPL ratio, fast lending growth and fast deposit growth is exactly the profile of a healthy banking system in which a regulator can comfortably run a relatively supportive stance. How the UAE macro picture in 2026 lines up with the corporate risk profile is covered in UAE economy 2026: diversification under stress test.

What this means for business and SMEs in the UAE

For SMEs

The presence of 6,198 SME borrowers on the list of deferral recipients, together with sector loan growth of +18.1% YoY, means UAE banks are actively lending to small and medium-sized businesses. In practice: (1) an SME application for an overdraft, working capital or trade finance now has better odds of approval than in 2023–2024; (2) when temporary payment difficulties arise, it makes sense to proactively discuss restructuring with the bank — against the backdrop of a low NPL ratio, banks are more receptive to good-faith borrowers than to pushing a case into default.

For large corporates

AED 9.1 billion of deferred repayments across 1,080 clients works out to an average deferral of about AED 8.4 million per company. The tool was genuinely used by large borrowers in sectors sensitive to the global cycle (real estate, export-oriented manufacturing, logistics). For a CFO this confirms that a conversation with the bank about restructuring in 2026 is a working mechanism, not a theoretical one.

For companies opening a corporate account in the UAE

A healthy banking system with high liquidity and low NPL is a favourable environment for new corporate clients. UAE banks continue to apply strict KYC and source-of-funds checks, but with clean documents and a clear operating model, standard corporate account approval in 2026 is a realistic scenario. The practical steps for opening a corporate account, typical turnaround times, bank requirements and "where the process breaks" are covered in Corporate bank account in the UAE in 2026: how to open one, how long it takes and where it breaks.

Strategic context

The outcome of the support package and the record low NPL are part of CBUAE's consistent communication around the financial stability of the UAE banking system. The regulator's key messages: (1) readiness to rapidly activate support tools in response to external shocks without weakening prudential requirements; (2) focus on the health of the corporate and SME portfolio as an indicator of the real economy; (3) preserving a balance between credit growth and portfolio quality. For business this implies a predictable banking environment over the medium term — with rising limits on corporate products and, at the same time, a high compliance bar.

Bottom line

CBUAE's March 2026 support package delivered AED 13.5 billion of loan deferrals to 135,031 customers, including 6,198 SMEs and 1,080 large corporates. At the same time, the UAE banking system's NPL ratio fell to a record 2.8% and the stock of problem loans shrank to AED 76 billion. Against this backdrop the banking sector is growing at double-digit rates: assets +12.5%, loans +18.1% and deposits +14% year-on-year. For business this translates into more accessible lending, more accommodating restructuring and a favourable environment for opening a corporate account in the UAE.

This article is provided for information only and does not constitute financial or legal advice. The terms of deferrals, availability of specific restructuring tools and KYC requirements should be confirmed directly with your UAE bank and on the official CBUAE website (centralbank.ae), as well as with a qualified advisor.

Topics:UAECBUAEBankingSMELoansNPLFinancial stability