UAE: Banks willing to help individuals, businesses hit by record rains

Banks are part of the economy, and they will provide a “lifeline"

by

Waheed Abbas

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Image used for illustrative purposes. File Photo
Image used for illustrative purposes. File Photo

Published: Tue 14 May 2024, 3:11 PM

Last updated: Tue 14 May 2024, 11:34 PM

Banks in the UAE are willing to work with customers and provide a "lifeline" to those who were impacted by the unprecedented rains last month, said Abdulaziz Al-Ghurair, chairman of UAE Banks Federation in a media briefing on Tuesday.

“For individuals, banks are willing to work together with customers if they have a genuine reason, be it mortgage, auto finance or personal loans. It could also be some companies whose businesses have been damaged and unfortunately, they don’t have insurance,” he said during a media briefing.


He added that the banks are part of the economy, and they will assist and provide a “lifeline” so that individuals and businesses can bounce back.

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“We are part of the economy and our interest is to stand by such customers in difficulty and support them. They also have to approach banks. It is an opportunity for people to take advantage of it. If they are genuine (victims) and have proof, our interest is to work together with clients – be it in individual or small or large businesses."

"Banks have shown maturity for this and they were tested during the Covid-19 time. Banks rescheduled loans when there was a genuine reason because there was just no income for some firms,” Al-Ghurair said during the media briefing.

On April 16, the UAE recorded the highest rains in 75 years, resulting in the disruption of flight operations and the cancellation of over 2,000 flights due to the flooding of Dubai International Airport. This resulted in damages to businesses and individuals.

On April 22, the Central Bank of the UAE (CBUAE) issued a notice to all banks and insurance companies to allow the deferral of repayment of instalments of personal and car loans for customers affected by the repercussions of the weather condition for a period of six months. The deferral shall be without imposing additional fees, interest or profits, or otherwise increasing the principal amount of the loan, it said.

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