UAE's credit demand picks up pace.

• Position: United Arab Emirates credit market

Gross credit growth in the UAE accelerated 0.7 percent month on month 4.3 percent year on year in June, according to the latest central bank data analysed by Abu Dhabi Commercial Bank (ADCB's) Economics Team.

"The monthly expansion in June was the strongest level seen so far this year, though could have been partly due to some pent-up demand among corporates following the generally quieter period during Ramadan (which fell in May)," said Monica Malik, Chief Economist of ADCB. Data showed the strongest monthly growth in credit was from the government-related entities (GRE) (1.7 percent month on month) and private businesses (1.1 percent), whilst government gross loans contracted by 1.6 percent.

The pace of monthly credit growth averaged 0.4 percent month on month in the first half of 2019, in line with the same period in 2018, though the drivers have shifted. GREs witnessed the strongest credit growth YTD...