Jin10 News, October 19 – The research department of Emirates NBD pointed out that the suppressive effect of rising interest rates on credit growth in Saudi Arabia may be greater than its impact on the UAE. Currently, Saudi Arabia's inflation rate remains below 2%, which means that with nominal interest rates staying high, the inflation-adjusted real borrowing costs will further increase, and the country's credit growth is also slowing down. In contrast, the UAE's inflation level is relatively higher, partly due to food and energy prices being more sensitive to market changes. This results in relatively lower real borrowing costs in the UAE, and its credit growth has gradually recovered from the slowdown in spring. Since both Saudi Arabia and the UAE operate currency peg systems linked to the US dollar, their interest rates generally need to follow adjustments in US monetary policy. Emirates NBD expects the Federal Reserve to raise interest rates once more this year, followed by maintaining rates unchanged for most of 2027. Under this policy trajectory, Saudi borrowers will be more susceptible to the tightening financial environment.