Already contending with the fallout from the eurozone crisis and high provisions for bad loans, banks in the United Arab Emirates face a further challenge in the second half of the year – new central bank regulations that threaten to further curb their sluggish lending growth.

While there have been exceptions - First Gulf Bank saw its loans grow 5.9% in the first half - UAE central bank data show total loans and advances in the system grew by just 1.8% in the first six months of 2012.