The UAE and Saudi Arabia are poised for robust credit growth in 2025, supported by strategic government policies, economic diversification efforts, and a resilient banking sector. Fitch analysts forecast a continued upward trajectory in loan demand, driven by a stable banking environment and improved asset quality. The UAE’s economic transformation, particularly its infrastructure and non-oil sectors, remains a key catalyst, while Saudi Arabia's Vision 2030 plan is set to further fuel demand for credit across various industriesnations have benefitted from strong financial regulation, contributing to healthier non-performing loan ratios and capital adequacy levels. With banks focusing on sustainable growth, UAE's banking sector has shown impressive resilience, even in volatile conditions, maintaining significant capital buffers. Similarly, Saudi banks are expected to leverage state-backed initiatives to stimulate economic activity and maintain growth momentum.
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