UAE tells banks to cut ties to Saudi Saad, AHAB

Banks in the United Arab Emirates have been directed by the central bank to stop lending to troubled Saudi businesses Saad Group and Ahmad Hamad Al Gosaibi Group & Brothers (AHAB), bankers said on Wednesday.

The central bank issued a circular to banks on Tuesday not to open any new facilities with the named Saudi groups until further notice, bankers in Abu Dhabi said.

"It was more of a cautionary directive," said a senior banker at Union National Bank. He added that it is unlikely that any banks or companies in the UAE would have any exposure to those groups.