UAE central bank mulls tougher loan rules - media

DUBAI, Aug 10 (Reuters) - The UAE central bank is considering new rules to restrict personal and small-business loans due to concerns individuals have become overleveraged in the real estate boom, according to newspaper reports.

"The central bank is concerned about the reports of use of leverage by individuals and small businesses in real estate transactions. There are talks of a tightening of regulations," said the unnamed retail banking head of a local bank, as quoted in daily newspaper Gulf News.

Central banks in the Gulf Arab states, including the United Arab Emirates (UAE), who have pegged their currencies to the U.S. dollar, have imposed a number of administrative and operational measures to restrict liquidity as inflation soars. [ID:nL75869]

Currently, UAE nationals may borrow up to 2 million UAE dirhams ($544,500) if they own a small business, the newspaper said. UAE nationals and expatriates may borrow up to 250,000 dirhams in personal loans plus incur credit card debt, overdraft debt and short-term cash advances, the newspaper said. (Reporting by Thomas Atkins; Editing by Anshuman Daga)