The recently released figures by the UAE Central Bank claim that the total mortgage loans of 24 national banks and 28 foreign units reported decline in growth to stand at Dh15billion in the first 11 months of 2009. This decline in the mortgage credit growth slowed down apparently under the impact of unfavorable conditions of the economic market due to global financial crisis.

The figures show that mortgage credit growth declined about 12 per cent during January-November 2009 as compared to a robust growth of 123 per cent during 2008. Mortgage credit remained under pressure due to liquidity crunch and overall slowdown in the real estate sector of the country.

Mohammed Al Asumi, a UAE-based economist confirmed decline in mortgage loans due to various national and international factors and said that lenders are still adopting very cautious approach to lend people apprehending further decline in business confidence.

Al Asumi added, "The banking sector also has liquidity shortages. This has made them even more careful. Another factor is the real estate downturn. All these factors contributed to the slowdown in mortgage loans."