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Thursday, 2 July 2009

GCC's financial sector recovery slows in June - Al Mal

The recovery in the Gulf’s finance sector lost its impetus in June as regional loan growth stalled and uncertainty over exposure to stressed regional conglomerates Al Gosaibi and Saad Group weighed on banking stocks, Al Mal Capital said on Wednesday.

The UAE’s pledge to guarantee bank bonds may not alleviate the liquidity concerns expressed by the country’s lenders, the Dubai-based investment bank said in a note to investors.

“We are doubtful about the impact on kick starting loan growth as the banks are reticent to extend loans into a fundamentally deteriorating economic environment,” a team of analysts wrote.

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