Economy
UAE Plans to Ease Citizens’ Debt Burden as Economy Slows
The United Arab Emirates started a program that aims to reduce the debt burden of its citizens as the oil-rich Gulf country grapples with an economic slowdown.
The program, launched by the central bank, targets loans that cost individuals more than 50 percent of their monthly salary, according to the state-run WAM news agency. Payments would be consolidated over a maximum period of four years and capped at half the person’s salary or 30 percent of their pension. The interest rate won’t exceed the three-month interbank rate
Gulf Arab monarchies have frequently bailed out citizens by writing off debt, part of an unwritten social pact that offers generous benefits in return for political loyalty. Critics say such moves encourage irresponsible borrowing. The vast majority of the U.A.E. population is made up of expatriates.
The U.A.E.’s program comes as the non-oil economy struggles to cope with more than four years of lower crude prices, causing a drop in property values. A measure of business activity last month showed that companies in the second-biggest Arab economy are cutting jobs at the fastest pace in almost a decade.
Under the program, eligible debt includes personal loans, auto loans, overdraft facilities and credit card balances given before May 2011. It doesn’t cover mortgages or loans for shares or deposits. Banks will start accepting applications in April.
Citizens have to pledge that they would not seek any loans or credit facilities from banks or financial institutions during the repayment period, WAM reported.
-
Economy3 weeks agoOMIFCO IPO: Price, Dividends, Subscription Dates and Listing – Here’s Everything You Need to Know
-
Economy2 months agoElectricity Tariffs Reduced for Residential Use – What It Means for You
-
Economy2 months agoNumber of Workers in GCC Countries Increase From 2021 to 2025
-
Magazines2 months agoOER Magazine April 2026 Issue
-
Oman2 months agoREVIEW: WHOOP and the Rise of Performance Luxury
-
Lifestyle2 months agoAP x Swatch Royal Pop: A Rule-Breaking Collaboration That Takes the Royal Oak Off the Wrist
-
News2 months agoANALYSIS: Oil Slips As Peace Hopes Reprice Middle East Risk, But Supply Tightness Keeps Market On Edge
-
Banking & Finance2 months agoTariq Atiq Appointed as CEO of Bank Nizwa

You must be logged in to post a comment Login