In 2023, the ratio of Bank Nonperforming Loans (NPLs) to Total Gross Loans in the UAE stood at 6.42%. Historically, this figure has fluctuated, peaking at 7.57% in 2020 and gradually declining to 6.39% in 2022. From 2024 to 2028, the forecast indicates a stabilized slight uptick, reaching 6.51% in 2028, with a 5-year CAGR of 0.19%. The year-on-year growth rate shows a stabilization, with a predicted 0.47% increase from 2023 to 2024 and a marginal 0.15% from 2027 to 2028.
Future trends to watch include the impact of economic recovery initiatives and regulatory changes on NPL ratios. Monitoring global economic conditions and their local ramifications will also be crucial.