Standard Chartered regional boss calls on UAE to infuse more liquidity

The UAE probably needs to add about Dh50 billion to its banking system to help reduce interest rates and boost economic growth, the Middle East head of Standard Chartered Plc said.

"My greatest concern in the UAE would revolve around liquidity and certainly the follow-on effect on property through to the industry," Shayne Nelson said in an interview at the World Economic Forum at the Dead Sea in Jordan. "I think in fresh liquidity, we probably need around Dh50 billion."

The central bank in October set up a Dh50 billion credit facility for lenders and the federal government said it would deposit Dh70 billion with banks to increase liquidity and lower interest rates after global credit markets froze.