Banks in the United Arab Emirates are cutting credit lines to small- and medium-sized businesses (SMEs) after a spate of defaults, posing a threat to one of the economy's main drivers. As weak oil prices prompt a drying up of bank liquidity, some lenders are becoming choosier, taking longer to approve loans or asking for more paperwork, while others are cutting lending or recalling loans, say businesses and bankers. While the trend is mainly because of banks' desire to protect capital, banking sources say some smaller lenders have also been told by the central bank to limit exposure to the sector. Nobody was available to comment from the central bank. The dislocation in the lending market risks undermining a push by the government to support SMEs, which make up about 60 per cent of UAE gross domestic product. The government has targeted raising their contribution to 70 per cent by 2021.