Central Bank calls meet on Saudi exposure today

The UAE Central Bank has convened a key meeting today of banks affected by their exposure to the two Saudi conglomerates – Saad and Algosaibi – in order to take stock of the extent of the problem and to chalk out an action plan. About 25 UAE banks are exposed, banking sources said.

"We have already received a letter from the Central Bank to this end a few days ago," the corporate head of a medium-sized Dubai-based bank told Emirates Business. This is the second such meeting being convened by the Central Bank, the first being on June 11.

Central Bank Governor Sultan bin Nasser Al Suwaidi yesterday said banks will be required to disclose the amount of loans that they have made to the Saudi companies. "There will be total disclosure," he said. "The market wants to learn about the exposure of UAE banks and that's what we will do. They will definitely have to reflect this in their year-end results," Al Suwaidi said.