The banks of the United Arab Emirates (UAE) are increasing lending to small and medium-size companies to boost profit, the Gulf Times said on Thursday. UAE banks, which had absorbed losses from real estate and investment loans, decided to increase lending to small and medium-scale businesses as the economy recovers from the credit crisis, the Gulf Times said. Abu Dhabi Commercial Bank PJSC, the country's third-biggest bank by assets, boosted such loans by 25 percent in the past 12 months, the paper said, quoting Colin Fraser, the company's Abu Dhabi-based head of wholesale banking. HSBC Holdings Plc's UAE unit aims to generate 40 percent of its commercial banking revenue from SMEs, in coming years, up from 25 percent today, said Nick Levitt, HSBC's head of UAE commercial banking. Lenders are trying to tap a wider range of borrowers after real-estate prices plunged more than 60 percent in the past three years. The slump triggered a doubling in bad loans and forced corporations to restructure debt. Smaller companies are seeking funds to expand as growth in the region accelerates.
