UAE lending moves beyond credit scores to assess borrowers, industry leaders say

The shift toward alternative data in UAE lending is a significant boon for SMEs in the industrial sector. Procurement managers can now leverage data-driven lending to secure financing for capital expenditure (CAPEX) on new machinery, even without extensive formal credit histories. This democratizes access to high-end industrial equipment for smaller manufacturing firms.

By using fintech-driven assessment tools, banks can offer more tailored financing solutions for equipment leasing and asset-backed loans. This trend is expected to accelerate the adoption of advanced manufacturing technologies across the UAE, as companies find it easier to fund the acquisition of robotics, CNC machines, and 3D printers.