UAE banks defer loan payments until June 30, 2026, to support affected customers
UAE banks defer loan payments until June 30, 2026, offering rescheduling and relief to affected businesses and individuals as NPLs fall to historic lows.
UAE banks defer loan payments and offer flexible rescheduling measures to customers affected by recent events, the UAE Banks Federation announced at a press briefing in Dubai on May 12, 2026. The move allows eligible individuals and companies to postpone loan installments until June 30, 2026, with the option to review and extend relief if conditions warrant. Federation chairman Abdulaziz Al Ghurair said the policy aims to protect credit records while helping borrowers manage temporary disruptions.
Banks Allow Deferment of Loan Installments Until June 30, 2026
The UAE Banks Federation confirmed that member banks are permitting deferment of financing installments through June 30, 2026.
Decisions on extending the deferment beyond that date will be reassessed based on evolving economic conditions and borrower needs.
Al Ghurair Says Policy Protects Borrowers and Business Continuity
Abdulaziz Al Ghurair told reporters that the policy is designed to prevent immediate classification of affected clients as impaired and to preserve their prior credit histories.
He emphasized that measures such as installment postponement and restructuring are intended to sustain operations and avoid long-term damage to viable businesses.
Banks Report Strong Balance Sheets and Historic Low NPLs
The federation highlighted that UAE banks ended 2025 with robust capital and liquidity positions, with total bank assets at AED 5.4 trillion.
Credit portfolios grew 17.9% and deposits rose 16.2% year-on-year, while non-performing loans have fallen to historically low levels, underscoring sector resilience.
Relief Provided to Commercial Sector Totals AED 6.5 Billion
Federation officials said banks have extended roughly AED 6.5 billion in targeted support to the commercial sector in the recent period.
That level of assistance is materially lower than the support provided during the COVID-19 crisis, reflecting healthier corporate balance sheets and less reliance on large-scale relief.
Q1 Banking Results Describe Record Performance and Capital Strength
Al Ghurair noted that first-quarter results were record-setting for many lenders, driven by profit growth, higher deposit inflows and improved capital adequacy.
He added that current provisioning levels are adequate and there are no immediate systemic indicators that would signal elevated default risk.
Focus on Digital Transformation and Emiratisation Progress
Jamal Saleh, director general of the UAE Banks Federation, said the industry continues to accelerate digital transformation, fintech enablement and cybersecurity enhancements.
The banking sector also exceeded Emiratisation targets, surpassing the 2025 benchmark by 160% after achieving 152.9% of targets in 2024, reflecting sustained investment in national talent development.
The federation also reiterated the sector’s role in global payments, noting the UAE ranks among the top 20 nations for cross-border transfers and seventh globally in trade-related flows. Al Ghurair said the union is pursuing representation for the UAE on the SWIFT board to reflect the country’s growing importance in the international payments landscape.
Banks will continue individual assessments when offering relief to ensure that temporary support does not undermine long-term credit discipline. Borrowers seeking assistance are advised to contact their banks to discuss tailored rescheduling or restructuring options, with institutions expected to consider past credit performance and the specific circumstances leading to repayment difficulties.
Economic outlook commentary from the federation remains cautiously optimistic, with Al Ghurair forecasting UAE GDP growth of approximately 4–5% by the end of 2026, exceeding many global projections after recent regional developments. He maintained that the country’s economy has shown an ability to recover from shocks and to emerge stronger, citing post-pandemic recovery as precedent.
The federation’s announcement underscores a coordinated banking-sector response aimed at balancing borrower support with financial stability. As banks implement deferments through June 30, 2026, officials pledged continued monitoring and dialogue with regulators and industry stakeholders to calibrate support measures in line with economic indicators and borrower needs.