Banks in the United Arab Emirates are preparing for whole hearted financial support to the small and medium scale industry in a bid to boost profit. The move assumes significance in the wake of economic recovery from the credit crisis.

Abu Dhabi Commercial Bank, the country's third biggest bank by assets and HSBC Holdings Plc's took lead in granting loans to SMEs during the past few months. Colin Fraser, the company's Abu Dhabi-based head of wholesale banking told that the bank hiked 25 per cent lending during last 12 months.

Nick Levitt, HSBC's head of UAE commercial banking in Dubai also echoed the similar sentiments adding that the bank has set a target of generating 40 per cent its revenue from small and medium scale industry.

UAE's property market saw property prices plunging more than 60 per cent in the past three years. The situation proved costly for the lenders as bad loans and poor recoveries made banks to adopt cautious approach while extending loans to the firms.

Smaller firms in fact effectively handled the global financial crisis very well given to their conservative and owner-managed approach.