RIYADH: The cumulative credit balance in the UAE’s business and industrial sectors rose to 757.4 billion dirhams ($206.2 billion) in the first quarter of the year, up from 741.8 billion dirhams at the end of 2023. A release from the Central Bank of the UAE showed that credit facilities extended just by the country’s national banks to these sectors reached 15.6 billion dirhams in the three months of the year. Comparing month-on-month figures, the credit balance saw a rise of 9.3 billion dirhams in March compared to the previous month, reflecting a steady upward trend in lending activities, the Emirates News Agency said. Year-on-year, the sectors experienced a substantial 3.02 percent increase in credit availability, amounting to 22.2 billion dirhams from 735.2 billion dirhams in March 2023, showcasing sustained financial support over the past year. National banks emerged as the primary financiers, contributing 841.7 billion dirhams or 90 percent of the combined credit balance for these sectors by the end of the first quarter of 2024, according to WAM. In contrast, foreign banks held a smaller share, providing 84.3 billion dirhams, highlighting the dominant role of domestic financial institutions in driving economic growth. Geographically, Abu Dhabi-based banks played a significant role by extending credit amounting to 374.1 billion dirhams, while Dubai-based banks provided 363.3 billion dirhams. Additional Emirates banks collectively contributed 104.3 billion dirhams to support business and industrial activities during the same period, underscoring the balanced regional distribution of financial resources. In terms of banking preferences, conventional financial institutes continued to be the preferred choice for credit financing, accounting for approximately 694 billion dirhams or 82.5 percent of the total credit extended to the trade and industry sectors by March 2024. Islamic banks, reflecting their growing influence in the financial sector, contributed approximately 147.7 billion dirhams, constituting 17.5 percent of the financing provided, reflecting their expanding role in catering to diverse financial needs. In 2023, the UAE’s industrial sector alone contributed $54 billion to the country’s gross domestic product, up 9 percent compared to 2022 figures. The boost was attributed to four main pillars, including providing a business-friendly environment that supports the growth and attractiveness of UAE firms, the Emirates News Agency reported.